Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 20202020follows:
A special shipment of 5050 pounds of breasts and 1515 pounds of wings has been destroyed in a fire. Farm GrownFarm Grown Chicken's insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits Farm GrownFarm Grown Chicken to use a joint-cost-allocation 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
120
$0.60
Wings
45
0.15
Thighs
30
0.35
Bones
90
0.05
Feathers
15
0.05ction process.
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 GrownFarm Grown Chicken use? Explain.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Control Systems Performance Measurement Evaluation And Incentives

Authors: Kenneth Merchant, Wim Van Der Stede

3rd Edition

0273737619, 978-0273737612

More Books

Students also viewed these Accounting questions