accounting

Question
Organic Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2017 is as​ follows: Joint cost of production in July 2017 was $100. A special shipment of 75pounds of breasts and 15 pounds of wings has been destroyed in a fire. Organic ​Chicken’s insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits Organic Chicken to use a​ joint-cost-allocation method. The splitoff point is assumed to be at the end of the production process. Read the requirements2. Requirement 1a. Compute the cost of the special shipment destroyed using the sales value at splitoff method. Complete the table below to assist you. ​(Round the weighting to three decimal places and the allocated costs per pound to four decimal places. Round all other amounts to the nearest​ cent.) Breast Wings Thighs Bones Feathers Total Pounds of product 200 50 100 140 10 Wholesale selling price per pound $0.55 $0.30 $0.35 $0.05 $0.10 Sales value at splitoff Weighting: Sales value at splitoff Joint costs allocated Allocated costs per pound ​(Round your answers to the nearest​ cent.) The cost of the 75 pounds of breasts is . The cost of the 15 pounds of wings is . Requirement 1b. Compute the cost of the special shipment destroyed using the​ physical-measure method​ (pounds of finished​ product). Complete the table below to assist you. ​(Round the weighting to three decimal​ places, the allocated costs per pound to four decimal​ places, and the joint costs allocated to the nearest​ cent.) Breasts Wings Thighs Bones Feathers Total Pounds of product 200 50 100 140 10 Weighting: Physical measures Joint costs allocated Allocated costs per pound ​(Round your answers to the nearest​ cent.) The cost of the 75 pounds of breasts is . The cost of the 15 pounds of wings is . Requirement 2. What​ joint-cost-allocation method would you recommend Organic Chicken​ use? Explain. The (1)                  method captures the​ benefits-received criterion of cost allocation and is the preferred method. The costs of processing a chicken are allocated to products in proportion to (2)                   . Organic ​Chicken’s decision to process chicken is heavily influenced by the (3)                  . The (4)                     provide relatively few benefits to Organic Chicken despite their high physical volume. 1: Data Table Parts Pounds of Product Wholesale Selling Price per Pound When Production is Complete Breast 200 $0.55 Wings 50 0.30 Thighs 100 0.35 Bones 140 0.05 Feathers 10 0.10 2: 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 Organic Chicken​ use? Explain.
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