Question

Tasty 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.) A special shipment of 30 pounds of breasts and 15 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 Joint cost of production in July 2017 was $50. 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.) Total Breast 100 Wings 20 Thighs 40 Bones 80 Feathers 10 H $ 0.65 $ 0.25 $ 0.45 $ 0.05 $ 0.05 Pounds of product Wholesale selling price per pound Sales value at splitoff Weighting: Sales value at splitoft Joint costs allocated Allocated costs per pound * Data Table Parts Breast Wings Thighs Pounds of Wholesale Selling Price per Pound Product When Production is complete 100 $ 065 0.25 0.45 Bones 0.05 Feathers 005 Print Done]

Answer 1

la. Calculation of Cost of the Special Shipment destroyed using the sales value at split off method Description Pound of product Wholesale selling price per pound Sales Vale Split Off Weighting: Sales Value at split off Joint Cost allocated Allocated Cost per Pound Breast Wings Thighs Bones Feathers Total 100 20 40 80 10 2 50 $0.65 $0.25 $0.45 $0.05 $0.05 | $65.00 $5.00 $18.00 $4.00 $0.50 $92.50| 0.703 0.054 0.195 0.043 0.005 1.000 $35.14 $2.70 $9.73 $2.16 $0.27 $50.00 $0.3514 $0.1351 $0.2432 $0.0270 $0.0270 $0.2000 30 Destroyed in fire in pound Cost of Special Shipment Destroyed $10.54 15 $2.03| 45 $12.57