Question
K Choice Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July is as follows.
K Choice Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July is as follows. (Click the icon to view the production information.) Joint cost of production in July was $75. A special shipment of 40 kilograms of breasts and 20 kilograms of wings has been destroyed in a fire. Choice Chicken's insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits Choice Chicken to use a joint cost allocation method. The splitoff point is assumed to be at the end of the production process. Required Complete the table below to assist you. (Round the weighting to three decimal places and the allocated costs per kilogram to four decimal places. Note that due to rounding, the total weighting may not necessarily add to 1. Round all other amounts to the nearest cent.) Breasts Wings Thighs Bones Feathers Total Kilograms of product 100 30 50 65 5 Wholesale selling price per kilogram $ 0.70 $ 0.30 $ 0.45 $ 0.10 $ 0.05 Sales value at splitoff Weighting: Sales value at splitoff Joint costs allocated Allocated costs per kilogram Production information Wholesale Selling Price per Kilograms of Kilogram when Production Parts Product Is Complete Breasts 100 $ 0.70 Wings 30 0.30 Thighs Bones Feathers 555 50 0.45 65 0.10 0.05 - x
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