$17-21$ Joint$-$cost allocation, insurance settlement. Quality Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July $2020$ follows:

Parts Breasts Wings Thighs Bones Feathers

Pounds ofProduct $100$

$20408010$

Wholesale Selling Price per Pound When Production lsComplete

$$0\mathrm{.}550\mathrm{.}200\mathrm{.}350\mathrm{.}100\mathrm{.}05$

Joint cost of production in July $2020$ was $$50.$

A special shipment of $40$ pounds of breasts and $15$ pounds of wings has been destroyed in a fire. Quality

Chicken$$s insurance policy provides reimbursement forthe cost ofthe items destroyed. The insurance com$-$ pany permits Quality Chicken to use a joint$-$cost$-$allocation method. The splitoff point is assumed to be at the end ofthe production process.

$1.$ Compute the cost ofthe special shipment destroyed using the following: a$.$ Sales value at splitoff method

b$.$ Physical$-$measure method $($pounds offinished product$)$

$2.$ Whatjoint$-$cost$-$allocation method would you recommend Quality Chicken use? Explain.