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Top Notch Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2017 is as
Top Notch Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2017 is as follows: | (Click the icon to view the information.) Joint cost of production in July 2017 was $50. A special shipment of 70 pounds of breasts and 5 pounds of wings has been destroyed in a fire. Top Notch Chicken's insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits Top Notch 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. Data table Pounds of Wholesale Selling Price per Pound Product When Production is Complete Parts Breast Wings Thighs Bones 30 45 Feathers 100 $ 02055 0.55 0.15 0.40 0.05 0.05 Requirements 1. Compute the cost of the special shipment destroyed using the following: a. Sales value at splitoff method b. Physical-measure method (pounds of finished product) 2. What joint-cost-allocation method would you recommend Top Notch Chicken use? Explain.
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