Management Control (M.EGI011)
Frangolandia
Firm FRANGOLANDIA is dedicated to the raising and commercializaCon of chickens for
slaughter.
The producCve process of this company is summarized as follows:
• In the secCon of faMening, day-old chicks purchased from breeders are subjected to a
faMening period using feed;
• In the Slaughter and SeparaCon secCon, and aTer the faMening process is completed, the
chickens are culled and separated into four main products (Legs, Breasts, Thighs and Wings)
and a by-product (Offal). There are also three other products (Blood, Bones and Feathers),
considered as waste, which give rise to removal costs and which are occasionally sold to
companies producing ferClizers (Blood and Bones), and sporCng goods (Feathers).
The accounCng system provided the following informaCon for the month of February of year
N:
a) ProducCon and Sales:
b) Industrial costs
c) Non-industrials costs
Master in Industrial Engineering and Management
Management Control (M.EGI011)
Requests
Based on the informaCon provided:
a) Value the by-products and determine the joint costs to be distributed by the main
products using the producCon method.
c) Determine the unit industrial costs of the main products using the criterion of the sales
value of the producCon.
d) Determine the unit industrial costs of the main products using the criterion of the sales
value at the point of separaCon.
b) Determine the unit industrial costs of the main products using quanCCes produced (weight)
as the criterion.
e) Determine the operaConal income, assuming the company uses the criterion
of the sales value at the point of separaCon to value the main products.
Master in Industrial Engineering and Management