(continuation of Exercise 15-16). Quality Chicken is computing the ending inventory values for…

(continuation of Exercise 15-16). Quality Chicken is computing the ending inventory values for its July 31, 2015, statement of financial position. Ending inventory amounts on July 31 are 15 kilograms of breasts, 4 kilograms of wings, 6 kilograms of thighs, 5 kilograms of bones, and 2 kilograms of feathers.

 Quality Chicken’s management wants to use the sales value at splitoff method. However, they want you to explore the effect on ending inventory values of classifying one or more products as a byproduct rather than a joint product.

 Required

 1. Assume Quality Chicken classifies all five products as joint products. What are the ending inventory values of each product on July 31, 2015?

 2. Assume Quality Chicken uses the production method of accounting for byproducts. What are the ending inventory values for each joint product on July 31, 2015, assuming breasts and thighs are the joint products and wings, bones, and feathers are byproducts?

 3. Comment on differences in the results in requirements 1 and 2.

Exercise 15-16

Quality Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2015 is:

Joint cost of production in July 2015 was $50.

 A special shipment of 40 kilograms of breasts and 15 kilograms of wings has been destroyed in a fire. Quality Chicken’s insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits Quality Chicken to use a joint cost allocation method. The splitoff point is assumed to be at the end of the production process.

 Required

 1. Compute the cost of the special shipment destroyed using:

 a. Sales value at splitoff method.

 b. Physical measure method (kilograms of finished product).

 2. What joint cost allocation method would you recommend Quality Chicken use? Explain.

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!