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Farm Grown Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2 0 2 0
Farm Grown Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July follows:
A special shipment of pounds of breasts and pounds of wings has been destroyed in a fire. Farm GrownFarm Grown Chickens insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits Farm GrownFarm Grown Chicken to use a jointcostallocation method. The splitoff point is assumed to be at the end of the produParts
Pounds of Product
Wholesale Selling Price per Pound When Production is Complete
Breasts
$
Wings
Thighs
Bones
Feathers
ction process.
Compute the cost of the special shipment destroyed using the following:
a
Sales value at splitoff method
b
Physicalmeasure methodpounds of finished product
What jointcostallocation method would you recommend Farm GrownFarm Grown Chicken use? Explain.
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