Gibson Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processesthem into two different products: chicken drumsticks and chicken steak. From a standard batch of 15,000 pounds of raw chicken thatcosts $8,200, the company produces two parts: 2,000 pounds of drumsticks and 5,000 pounds of breast for a processing cost of$3,887. The chicken breast is further processed into 4,200 pounds of steak for a processing cost of $2,200. The market price ofdrumsticks per pound is $1.65 and the market price per pound of chicken steak is $4.20. If Gibson decided to sell chicken breastinstead of chicken steak, the price per pound would be $2.40.Requireda-1. Allocate the joint cost to the joint products, drumsticks and breasts, using weight as the allocation base.a-2. Calculate the gross profit for each product.a-3. If the drumsticks are producing a loss, should that product line be eliminated?b-1. Reallocate the joint cost to the joint products, drumsticks and breasts, using relative market values as the allocation base.b-2. Calculate the gross profit for each product.c-1. Should Martin further process chicken breasts into chicken steak? (Use the assumption made in requirement b-1).c-2. How would the profit be affected by your answer in c-T?X Answer is not complete.Complete this question by entering your answers in the tabs below.Req A1Req A2Req A3Req B1Req B2Req C1Req C2Allocate the joint cost to the joint products, drumsticks and breasts, using weight as the allocation base. (Round "Allocationrate" to 2 decimal places.)Weight ofBaseAllocationProductAllocated Cost%3DRateDrumsticks1.55 XX2,000$3,100Chicken breast1.55 X x5,0007,750Total allocated cost$10,850

Name: Gibson Chicken Corporation processes and packages chicken for grocery
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Gibson Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processesthem into two different products: chicken drumsticks and chicken steak. From a standard batch of 15,000 pounds of raw chick