Jackson Flocks Inc. processes Turkeys into three products for sale on the wholes
ID: 2607167 • Letter: J
Question
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.
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
Explanation / Answer
joint cost before sale of feathers = 10000000
joint cost 10000000 less sale of feathers 1000000 net joint cost 9000000Related Questions
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