Question

Organic Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2013 is as follows:


Joint cost of production in July 2013 was $ 40.
A fire destroys a special shipment of 75 pounds of breasts and 20 pounds of wings. 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.
Compute the cost of the special shipment destroyed using the sales value at splitoffmethod.


$1.99
Sales2
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  • CreatedJanuary 15, 2015
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