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 15 pounds of breasts, 4 pounds ofwings, 6 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.

	Breasts	Wings	Thighs	Bones	Feathers	Total
Pounds of product	100	20	40	80	10	250
Wholesale selling price
per pound	$0.55	$0.20	$0.35	$0.10	$0.05
Sales value at splitoff	$55.00	$4.00	$14.00	$8.00	$0.50	$81.50
Weighting: Sales Value
at splitoff	0.675	0.049	0.172	0.098	0.006	1.000
Joint costs allocated	$33.75	$2.45	$8.60	$4.90	$0.30	$50.00
Allocated costs
per pound	$0.3375	$0.1225	$0.2150	$0.0613	$0.0300

Requirement 1. Assume

Quality

Chicken classifies all five products as joint products. What are the ending inventory values of each product on July31,

2020?

(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

Requirement 2.Assume Tasty 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?

Joint costs

-

NRV of byproducts

=

Joint costs to be allocated

-

Breasts

Thighs

Total

Pounds of product

Wholesale selling price

Ending inventory value

per pound

Sales value at splitoff

Weighting: Sales value

at splitoff

Joint costs allocated

Allocated costs

Part 5