Talk to Joseph Rooster to learn that his prize chicken has gone missing in the cemetery.
Please look for my chicken at the cemetary!
My best chicken is missing. It was laying two eggs a day! All the other farmers were really jealous. If you're willing to help me you should start your search at the cemetery. I saw it running in that direction, but I'm afraid to go there myself.
Head north into the cemetery. Turn left (west) and head into the northwest corner; pick up the chicken’s corpse from near the three inscribed monuments.
Head back towards the exit and kill the Feather-covered Zombie. It has a tendency to wander out of the cemetery towards where Joseph is standing, so if you can’t see it in the cemetery check towards where he is.
Talk to Joseph again for your reward.
My poor chicken! Just think of all the eggs it will never get to lay now! Here, take this as a token of my appreciation.