Please include all steps and the numbers used to reach the solutions.

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

Joint cost of production in July 2017 was $100.

A special shipment of 100 pounds of breasts and 25 pounds of wings has been destroyed in a fire. Organic Chicken's insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits Organic Chicken to use a joint-cost-allocation method. The splitoff point is assumed to be at the end of the production process.

Pounds of Product Wholesale Selling Price per Pound When Production is Complete

Breast 200$ $0.45

Wings 50 0.20

Thighs 100 0.30

Bones 140 0.15

Feathers 10 0.05

Requirement 1a. Compute the cost of the special shipment destroyed using the sales value at splitoff method.

Complete the table below to assist you. (Round the weighting to three decimal places and the allocated costs per pound to four decimal places. Round all other amounts to the nearest cent.)

	Breast	Wings	Thighs	Bones	Feathers	Total
Pounds of product	200	50	100	140	10	500
Wholesale selling price
per pound	$0.45	$0.20	$0.30	$0.15	$0.05
Sales value at splitoff	$90.00	$10.00	$30.00	$21.00	$0.50	$151.50
Weighting: Sales value
at splitoff
Joint costs allocated
Allocated costs
per pound

Requirements

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 Organic Chicken use? Explain.