Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Organic Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Organic Chicken is computing the ending inventory values for its

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Organic Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Organic Chicken is computing the ending inventory values for its July 31, 2020, balance sheet. Ending inventory amounts on July 31 are 17 pounds of breasts, 8 pounds of wings, 4 pounds of thighs, 6 pounds of bones, and 2 pounds of feathers. Organic Chicken's management wants to use the sales value at splitoff 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. (Click to view information on the sales value at splitoff method.) Pounds of product Wholesale selling price Breasts Wings 90 25 Thighs Bones Feathers Total 35 45 5 200 per pound $ 0.55 $ 0.25 $ 0.35 $ 0.05 $ 0.10 Sales value at splitoff 49.50 $ 6.25 12.25 $ 2.25 0.50 $ 70.75 Weighting: Sales Value at splitoff 0.700 0.088 0.173 0.032 0.007 1.000 Joint costs allocated $ 28.00 $ 3.52 $ 6.92 $ 1.28 $ 0.28 $ 40.00 Allocated costs per pound $ 0.3111 $ 0.1408 $ 0.1977 $ 0.0284 $ 0.0560 Requirement 1. Assume Organic Chicken classifies all five products as joint products. What are the ending inventory values of each product on July 31, 2020? (Round your answers to the nearest cent. Enter an amount for each product including zero balances.) Product Breasts Wings Thighs Bones Feathers Total Ending inventory value

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

Financial and managerial accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

1st edition

111800423X, 9781118233443, 1118016114, 9781118004234, 1118233441, 978-1118016114

More Books

Students also viewed these Accounting questions