Question: I have #1 completed I really need the help with the second and third question. Thank you, Jackson Flocks Inc. processes Turkeys into three products
I have #1 completed I really need the help with the second and third question. Thank you,
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 --- COMPLETED
Physical-measure method (volume in units) ---- COMPLETED
NRV method----- COMPLETED
2. 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.
3. 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.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
