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Problem: Tyson Foods (TSN), one of the world's largest food companies, operates a chicken production process that begins with the hatching of chicks and ends with packaged chicken for sale at your local grocery market. The most desirable chickens are maintained as breeding stock for laying eggs and producing chicks. Once a chick is hatched, it is transported to a growing farm. At the farm, the chicken is housed and fed corn, soybean, and other feed. Once the chicken reaches maturity, it is transported to a processing plant where it is converted into a finished product and packaged for delivery to your local grocery store. Critical Thinking/Judgment How should Tyson account for the transportation, boarding, and feed costs related to chickens sent to the processing plant? Can you think of any other costs related to chickens raised for processing? Should the costs of the breeder flock be included in inventory?
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