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 25 pounds of breasts, 2 pounds of wings, 10 pounds of thighs, 5 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.

Requirements

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1.	Assume Quality Chicken classifies all five products as joint products. What are the ending inventory values of each product on July 31, 2020?
2.	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?
3.	Comment on differences in the results in requirements 1 and 2.

Reference Breasts Wings 200 40 Thighs 80 Bones 160 Feathers 20 Total 500 $ 0.65 $ $ 130.00 $ 0.20 $ 0.35 $ 0.10 $ 8.00 $ 28.00 $ 16.00 $ 0.10 2.00 $ 184.00 Pounds of product Wholesale selling price per pound Sales value at splitoff Weighting: Sales Value at splitoff Joint costs allocated Allocated costs per pound 0.087 1.000 0.707 $ 70.70 S 0.043 0.152 4.30 $ 15.20 $ 0.011 1.10 $ 100.00 8.70 $ $ 0.3535 S 0.1075 S 0.1900 S 0.0544 S 0.0550 Ending inventory value Product Breasts Wings Thighs Bones Feathers Total