Quality Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Quality Chicken is computing the ending inventory values for its July 31, 2020, balance sheet. Ending inventory amounts on July 31 are 12 pounds of breasts, 3 pounds of wings, 7 pounds of thighs, 6 pounds of bones, and 2 pounds of feathers. Quality 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 Reference - Breasts Wings Thighs Bones Feathers Total 150 30 30 75 15 300 $ 0.65 $ 0.15 $ 0.35 $ 0.05 $ 0.10 Pounds of product Wholesale selling price per pound Sales value at splitoff Weighting: Sales Value at splitoff $ 97.50 $ 4.50 $ 10.50 $ 3.75 $ 1.50 $ 117.75 0.828 0.038 0.089 0.032 0.013 1.000 Joint costs allocated $ 66.24 $ 3.04 $ 7.12 $ 2.56 $ 1.04 $ 80.00 Allocated costs per pound $ 0.4416 $ 0.1013 $ 0.2373 $ 0.0341 $ 0.0693 - Requirements 1. 2. Assume Quality Chicken classifies all five products as joint products. What are the ending inventory values of each product on July 31, 2020? Assume Quality Chicken uses the production method of accounting for byproducts. What are the ending inventory values for each joint product on July 31, 2020, assuming breasts and thighs are the joint products and wings, bones, and feathers are byproducts? Comment on differences in the results in requirements 1 and 2. 3. 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 Ending inventory value Breasts $ 2.85 Wings 0.28 Thighs 0.91 Bones 0.34 0.17 Feathers $ 4.55 Total Requirement 2. Assume Organic Chicken uses the production method of accounting for byproducts. What are the ending inventory values for each joint product on July 31, 2020, assuming breasts and thighs are the joint products and wings, bones, and feathers are byproducts? Begin by selecting the formula to calculate the joint costs to be allocated. Then enter the amounts and determine the amount. (NRV = Net Realizable Value.) = Joint costs NRV of byproducts Joint costs to be allocated $ 40.00 11.25 $ 28.75 Now use the table below to calculate the allocated costs per pound for the breasts and thighs. (Round the weights to three decimal places, the joint costs to the nearest cent and the allocated costs per pound to four decimal places.) Breasts Thighs Total 90 35 125 $ 0.50 $ 0.40 Pounds of product Wholesale selling price per pound Sales value at splitoff Weighting: Sales value at splitoff $ 45.00 $ 14.00 $ 59.00 0.763 0.237 1.000 Joint costs allocated $ 21.94 $ 6.81 $ 28.75 Allocated costs per pound $ 0.2438 $ 0.1946 What are the ending inventory values for each joint product on July 31, 2020, assuming breasts and thighs are the joint products and wings, bones, and feathers are byproducts? (Round all amounts to the nearest cent. Enter an amount for each product including zero balances.) Product Ending inventory value Breasts $ 2.44 Wings 0.00 Thighs 0.78 Bones 0.00 0.00 Feathers 3.22 Total Requirement 3. Comment on differences in the results in requirements 1 and 2. A. Requirement 1 and 2 result in the same ending inventory value since there is no difference in allocating costs when there are byproducts. B. In requirement 1 joint costs are allocated to only the most profitable joint products. In requirement 2 all products, including byproducts, are allocated joint costs. C. In requirement 1 each product is allocated joint costs since each product is a joint product. In requirement 2 only breasts and thighs are allocated joint costs since the remaining products are byproducts. D. None of the above are true. Quality Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Quality Chicken is computing the ending inventory values for its July 31, 2020, balance sheet. Ending inventory amounts on July 31 are 12 pounds of breasts, 3 pounds of wings, 7 pounds of thighs, 6 pounds of bones, and 2 pounds of feathers. Quality 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 Reference - Breasts Wings Thighs Bones Feathers Total 150 30 30 75 15 300 $ 0.65 $ 0.15 $ 0.35 $ 0.05 $ 0.10 Pounds of product Wholesale selling price per pound Sales value at splitoff Weighting: Sales Value at splitoff $ 97.50 $ 4.50 $ 10.50 $ 3.75 $ 1.50 $ 117.75 0.828 0.038 0.089 0.032 0.013 1.000 Joint costs allocated $ 66.24 $ 3.04 $ 7.12 $ 2.56 $ 1.04 $ 80.00 Allocated costs per pound $ 0.4416 $ 0.1013 $ 0.2373 $ 0.0341 $ 0.0693 - Requirements 1. 2. Assume Quality Chicken classifies all five products as joint products. What are the ending inventory values of each product on July 31, 2020? Assume Quality Chicken uses the production method of accounting for byproducts. What are the ending inventory values for each joint product on July 31, 2020, assuming breasts and thighs are the joint products and wings, bones, and feathers are byproducts? Comment on differences in the results in requirements 1 and 2. 3. 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 Ending inventory value Breasts $ 2.85 Wings 0.28 Thighs 0.91 Bones 0.34 0.17 Feathers $ 4.55 Total Requirement 2. Assume Organic Chicken uses the production method of accounting for byproducts. What are the ending inventory values for each joint product on July 31, 2020, assuming breasts and thighs are the joint products and wings, bones, and feathers are byproducts? Begin by selecting the formula to calculate the joint costs to be allocated. Then enter the amounts and determine the amount. (NRV = Net Realizable Value.) = Joint costs NRV of byproducts Joint costs to be allocated $ 40.00 11.25 $ 28.75 Now use the table below to calculate the allocated costs per pound for the breasts and thighs. (Round the weights to three decimal places, the joint costs to the nearest cent and the allocated costs per pound to four decimal places.) Breasts Thighs Total 90 35 125 $ 0.50 $ 0.40 Pounds of product Wholesale selling price per pound Sales value at splitoff Weighting: Sales value at splitoff $ 45.00 $ 14.00 $ 59.00 0.763 0.237 1.000 Joint costs allocated $ 21.94 $ 6.81 $ 28.75 Allocated costs per pound $ 0.2438 $ 0.1946 What are the ending inventory values for each joint product on July 31, 2020, assuming breasts and thighs are the joint products and wings, bones, and feathers are byproducts? (Round all amounts to the nearest cent. Enter an amount for each product including zero balances.) Product Ending inventory value Breasts $ 2.44 Wings 0.00 Thighs 0.78 Bones 0.00 0.00 Feathers 3.22 Total Requirement 3. Comment on differences in the results in requirements 1 and 2. A. Requirement 1 and 2 result in the same ending inventory value since there is no difference in allocating costs when there are byproducts. B. In requirement 1 joint costs are allocated to only the most profitable joint products. In requirement 2 all products, including byproducts, are allocated joint costs. C. In requirement 1 each product is allocated joint costs since each product is a joint product. In requirement 2 only breasts and thighs are allocated joint costs since the remaining products are byproducts. D. None of the above are true