-----TastyTasty Chicken grows and processes chickens. Each chicken is disassembled into five main parts.

TastyTasty Chicken is computing the ending inventory values for its July 31, 2014 , balance sheet. Ending inventory amounts on July 31 are 20 pounds of breasts, 10

pounds of wings,77 pounds of thighs, 99 pounds of bones, and 33 pounds of feathers.

---TastyTasty 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

DATA

	Breast	Wings	Thighs	Bones	Feathers	Total
Pounds of product	200	50	100	140	10	500
Wholesale selling price
per pound	$0.40	$0.15	$0.40	$0.15	$0.10
Sales value at splitoff	$80.00	$7.50	$40.00	$21.00	$1.00	$149.50
Weighting: Sales Value
at splitoff	0.535	0.05	0.268	0.14	0.007	1
Joint costs allocated	$53.50	$5.00	$26.80	$14.00	$0.70	$100.00
Allocated costs
per pound	$0.27	$0.10	$0.27	$0.10	$0.07

Requirements

1.

Assume TastyTasty Chicken classifies all five products as joint products. What are the ending inventory values of each product on July 31, 20142014? 2. Assume TastyTasty Chicken uses the production method of accounting for byproducts. What are the ending inventory values for each joint product on July 31, 20142014, 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.