E16-21 (similar to) Questor, Help 20 pounds of wings has been destroyed in a fre

Question

E16-21 (similar to) Questor, Help 20 pounds of wings has been destroyed in a fre * Top Notch Chicken grows and processes chickens. Each chicken is disassembled into five main parts. A special shipment of 70 pounds of breasts and Information pertaining to production in July 2017 ts as tollows Top Notch Chicken's insurance policy provides reimbursement for ne cost of the tems (Cack the kcon to view the information ) Joint cost of production in July 2017 was $100 insurance company permts Top Notch Chicken to use a joent cost ailacation method. The splto pont s assumed to be at the end of the production process Read the tequiements Breast Wings Thighs Bones Feathers Pounds of product 80 160 Wholesale selting price s 050s 015S045 S 010 005 per pound Sales value at spitof Weighting Sales value at spiiom Joint costs allocated Allocated costs per pound han rk Check Answer

Explanation / Answer

BREAST WINGS THIGHS BONES FEATHERS TOTALL Pound of product 200 40 80 160 20 Wholesale Selling price 0.5 0.15 0.45 0.1 0.05 Sales value at Splitt off point 100 6 36 16 1 159 Weighting Ssales value 62.89% 3.77% 22.64% 10.06% 0.63% 100.00% Joint Cost allocated 62.89 3.77 22.64 10.06 0.63 100.00 Allocated cost per pound 0.31 0.09 0.28 0.06 0.03 Cost of special shipment: Breast (70 pounds @ 0.31) 21.7 Wings (20 pounds @ 0.09) 1.8 Total cost of Special shipment 23.5 BREAST WINGS THIGHS BONES FEATHERS TOTALL Pound of product 200 40 80 160 20 500 Weighting Ssales value 40.00% 8.00% 16.00% 32.00% 4.00% 100.00% Joint Cost allocated 40.00 8.00 16.00 32.00 4.00 100.00 Allocated cost per pound 0.20 0.20 0.20 0.20 0.20 Cost of Special Shipment: Breast (70 pounds @ 0.20) 14 Wings (20 pounds @ 0.20) 4 Total cost of Special order 18 Req 2: Sales value at Splitt off point is a better methof ofallocation of cost as it takes in to account the differentiated value of each product.

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