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Tasty Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Informa EEB (Click the icon to view the information.) Joint cost
Tasty Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Informa EEB (Click the icon to view the information.) Joint cost of production in July 2017 was $40 tion pertaining to production in July 2017 is as follows: A special shipment of 70 pounds of breasts and 5 pounds of wings has been destroyed in a fire. Tasty Chicken's insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits Tasty Chicken to use a joint-cost-allocation method. The splitoff point is assumed to be at the end of the production process. Read the requirements. Wholesale Selling Price per Pound Parts Breast Wings Thighs Bones Feathers Pounds of Product 90 25 35 45 When Production is Complete 0.50 0.30 0.35 0.15 0.05 1. Compute the cost of the special shipment destroyed using the following Sales value at splitoff method a. b. Physical-measure method (pounds of finished product) What joint-cost-allocation method would you recommend Tasty Chicken use? Explain 2
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