AOne Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2017 is as follows:

Wholesale Selling Price per Pound

Parts

Pounds of Product

When Production is Complete

Breast

150

$0.70

Wings

30

0.30

Thighs

30

0.40

Bones

75

0.15

Feathers

15

0.05

A special shipment of 30 pounds of breasts and 5 pounds of wings has been destroyed in a fire. Upper A - One Chicken's insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits Upper A -One Chicken to use a joint-cost-allocation method. The split off point is assumed to be at the end of the production process.

Joint cost of production in July 2017 was $80.

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 Upper A minus OneAOne Chicken use? Explain.

	Breast	Wings	Thighs	Bones	Feathers	Total
Pounds of product	150	30	30	75	15
Wholesale selling price
per pound	$0.70	$0.30	$0.40	$0.15	$0.05
Sales value at splitoff
Weighting: Sales value
at splitoff
Joint costs allocated
Allocated costs
per pound