Farm Bred Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July

2014 is as follows:

		Wholesale Selling Price per Pound
Parts	Pounds of Product	When Production is Complete
Breast	125	$0.40
Wings	30	0.15
Thighs	30	0.35
Bones	60	0.15
Feathers	5	0.10

Joint cost of production in July 2014 was $50.

A special shipment of 60 pounds of breasts and 15 pounds of wings has been destroyed in a fire.Farm Bred Chicken's insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits Farm Bred Chicken to use a joint-cost-allocation method. The splitoff point is assumed to be at the end of the production process.

Requirments

1.	Compute the cost of the special shipment destroyed using the following:
	a.	Sales value at splitoff method
	b.	Physical-measure method (pounds of finished product)
2.	What joint-cost-allocation method would you recommend Farm Bred Chicken use? Explain.

Requirement 1a. Compute the cost of the special shipment destroyed using the sales value at splitoff method.

Complete the table below to assist you. (Round the weighting to three decimal places and the allocated costs per pound to four decimal places. Round all other amounts to the nearest cent.)

	Breast	Wings	Thighs	Bones	Feathers	Total
Pounds of product	125	30	30	60	5
Wholesale selling price
per pound	$0.40	$0.15	$0.35	$0.15	$0.10
Sales value at splitoff
Weighting: Sales value
at splitoff
Joint costs allocated
Allocated costs
per pound