Question: A-One Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2020 follows: E: (Click the

 A-One Chicken grows and processes chickens. Each chicken is disassembled into

A-One Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2020 follows: E: (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. A-One Chicken's insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits A-One 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 2020 was $50. Requirement 1a. Compute the cost of the special shipment destroyed using the sales value at splitoff method. X Data table Complete the table below to assist you. (Round the weighting to three decimal places and the allocated costs per pound Breast Thighs Bones Feathers Total Wings 30 125 30 60 5 Pounds of product Wholesale selling price Parts Pounds of Product Wholesale Selling Price per Pound When Production is complete Breasts 125 $ 0.55 per pound $ 0.55 $ 0.15 $ 0.30 $ 0.05 $ 0.05 Wings 30 0.15 Sales value at splitoff 30 0.30 Thighs Bones Feathers 60 0.05 5 Weighting: Sales value at splitoff Joint costs allocated Allocated costs 0.05 per pound Print Done

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!