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Chicken grows and processes chickens. Each chicken is disassembled into five main parts.

Tasty Chicken is computing the ending inventory values for its July 31,2014 balance sheet. Ending inventory amounts on July 31 are 20 pounds of breasts, 10 pounds of wings, 77 pounds of thighs,99 pounds of bones, and 33 pounds of feathers. Tasty Chicken's management wants to use the sales value at splitoff method. However, management wants you to explore the effect on ending inventory values of classifying one or more products as a byproduct rather than a joint product.

Breast Wings Thighs Bones Feathers Total Pounds of product 200 50 100 140 10 500 Wholesale selling price per pound $0.40 $0.15 $0.40 $0.15 $0.10 Sales value at splitoff $80.00 $7.50 $40.00 $21.00 $1.00 $149.50 Weighting: Sales Value at splitoff 0.535 0.05 0.268 0.14 0.007 1 Joint costs allocated $53.50 $5.00 $26.80 $14.00 $0.70 $100.00 Allocated costs per pound $0.27 $0.10 $0.27 $0.10 $0.07

Requirement: Assume TastyTasty Chicken uses the production method of accounting for byproducts. What are the ending inventory values for each joint product on July 31, 2014 assuming breasts and thighs are the joint products and wings, bones, and feathers are byproducts?

Begin by selecting the formula to calculate the joint costs to be allocated. Then enter the amounts and determine the amount.

Requirement 2. Assume

TastyTasty Chicken uses the production method of accounting for byproducts. What are the ending inventory values for each joint product on July 31,

20142014,

assuming breasts and thighs are the joint products and wings, bones, and feathers are byproducts?

Begin by selecting the formula to calculate the joint costs to be allocated. Then enter the amounts and determine the amount. (NRV = Net Realizable Value.)

Requirement 2. Assume TastyTasty Chicken uses the production method of accounting for byproducts. What are the ending inventory values for each joint product on July 31, 20142014, assuming breasts and thighs are the joint products and wings, bones, and feathers are byproducts?

Begin by selecting the formula to calculate the joint costs to be allocated. Then enter the amounts and determine the amount. (NRV = Net Realizable Value.)

Joint costs -NRV of byproducts =J equal joint costs to be allocated

.We can now start to allocate the joint costs. First, you need to determine the total sales value at splitoff of the two main products and then calculate the weight of each product's sales value at splitoff to the total sales value at splitoff of the main products. Complete the table below. (Round the weights to three decimal places.)

Requirmet:3

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

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