Farm-Grown Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Farm Grown Chicken is computing the ending inventory values for its July 31, 2014, balance sheet. Ending inventory amounts on July 31 are 17 pounds of breasts,4 pounds of wings,6 pounds of thighs, 5 pounds of bones, and 3 pounds of feathers. Farm Grown Chicken's management wants to use the sales value at the split-off method. However, management wants you to explore the effect on ending inventory values of classifying one or more products as a byproduct rather than a joint product.

	Breast	Wings	Thighs	Bones	Feathers	Total
Pounds of product	150	30	30	75	15	250
Wholesale selling price
per pound	$0.55	$0.15	$0.45	$0.15	$0.05
Sales value at splitoff	$82.50	$4.50	$13.50	$11.25	$0.75	$112.50
Weighting: Sales Value
at splitoff	0.733	0.040	0.120	0.100	0.007	1.000
Joint costs allocated	$58.64	$3.20	$9.60	$8.00	$0.56	$80.00
Allocated costs
per pound	$0.3909	$0.1067	$0.3200	$0.1067	$0.0373

1.	Assume Farm Grown Chicken classifies all five products as joint products. What are the ending inventory values of each product on July 31, 2014?
2.	Assume Farm Grown Chicken uses the production method of accounting for byproducts. What are the ending inventory values for each joint product on July 31, 2014, assuming breasts and thighs are the joint products and wings, bones, and feathers are byproducts?
3.	Comment on differences in the results in requirements 1 and 2.

Requirement 1. Assume

Farm Grown

Chicken classifies all five products as joint products. What are the ending inventory values of each product on July 31,

2014?

(Round your answers to the nearest cent. Enter an amount for each product including zero balances.)

Product	Ending inventory value
Breasts
Wings
Thighs
Bones
Feathers
Total

2) ...

3)...