Jackson Flocks Inc. processes Turkeys into three products

Jackson Flocks Inc. processes Turkeys into three products for sale on the wholesale market: Breasts Smoked legs and thighs Whole Turkeys Necks and wings for soup The costs to get the products to the point where they can be separately identified total $10,000,000. Additional Information follows: Product Lbs. Produced Cost after split-off Selling price per pound Breasts 1,000,000 $200,000 $2 Smoked legs and thighs 2,500,000 500,000 4 Whole Turkeys 2,000,000 425,000 3 Necks and wings 500,000 350,000 5 Feathers are sold at the split-off point as a by-product for $1,000,000 which lower the joint costs allocated. Based on the information given for Jackson Flocks: allocate the joint processing costs to the three products using: Sales value at split-off method Physical-measure method (volume in units) NRV method Prepare an analysis for Jackson Flocks that compares processing the smoked legs and thighs further, as it currently does, with selling them as a product immediately at split-off. Assume Jackson flocks announced that in six months it will sell the legs and thighs at split-off due to increasing competitive pressure. Identify at least three types of likely behavior that will be demonstrated by the skilled labor in the brining and smoking process as a result of this announcement. Include in your discussion how this behavior could be influenced by management.


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