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E16-21 (similar to) Question Help Choice Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2017 is as follows: A special shipment of 60 pounds of breasts and 25 pounds of wings has been destroyed in a fire. Choice Chicken's insurance policy provides reimbursement the cost of the items destroyed. The insurance company permits Choice Chicke to use a joint-cost-allocation method. The splitoff point is assumed to be at the end of the production process. Read the requirements (Click the icon to view the information.) Joint cost of production in July 2017 was $70 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 120 45 30 15 Wholesale selling price 0.15 S per pound 0.70 0.35 $ 0.10 0.10 Sales value at splitoff Weighting: Sales value at splitoff Joint costs allocated Allocated costs per pound 90 Wholesale Selling Price per Pound When Production is Complete Parts Pounds of Product Breast 120 0.70 Wings 45 0.15 Thighs 30 0.35 Bones 90 0.10 Feathers 15 0.10 1. Compute the cost of the special shipment destroyed using the following: Sales value at splitoff method a. b. Physical-measure method (pounds of finished product) 2. What joint-cost-allocation method would you recommend Choice Chicken use? Explain

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