Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis. To Calculate: Allocation of joint cost of land and improvement on value basis and average cost per lot

Question

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Answer 1

Question

Chapter 24, Problem 21E

To determine

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis.

To Calculate: Allocation of joint cost of land and improvement on value basis and average cost per lot

Expert Solution & Answer

Answer to Problem 21E

Solution:

Allocation of Joint Cost

$\begin{array}{l} C a n y o n S e c t i o n = 60 % o f 7500000 = $ 4, 500, 000 \\ H i l l t o p S e c t i o n = 40 % o f 7500000 = $ 3, 000, 000 \end{array}$

Average Cost per lot

$\begin{array}{l} C a n y o n S e c t i o n = \frac{$ 4, 500, 000}{450} = $ 10, 000 \\ H i l l t o p S e c t i o n = \frac{$ 3, 000, 000}{150} = $ 20, 000 \end{array}$

Explanation of Solution

Explanation:

Total or Joint Cost

$\begin{array}{l} T o t a l C o s t = C o s t o f L a n d + I m p r o v e m e n t C o s t \\ = 4000000 + 3500000 \\ = $ 7, 500, 000 \end{array}$

Market Value

$\begin{array}{l} M a r k e t V a l u e o f C a n y o n S e c t i o n = $ 55000 x 450 = $ 24, 750, 000 \\ M a r k e t V a l u e o f H i l l t o p S e c t i o n = $ 110000 x 150 = $ 16, 500, 000 \\ T o t a l M a r k e t V a l u e = 24750000 + 16500000 = $ 41, 250, 000 \end{array}$

Percentage of Market Value per Section

$\begin{array}{l} C a n y o n S e c t i o n = \frac{24750000}{41250000} = 60 % \\ H i l l t o p S e c t i o n = \frac{16500000}{41250000} = 40 % \end{array}$

Allocation of Joint Cost

$\begin{array}{l} C a n y o n S e c t i o n = 60 % o f 7500000 = $ 4, 500, 000 \\ H i l l t o p S e c t i o n = 40 % o f 7500000 = $ 3, 000, 000 \end{array}$

Average Cost per lot

$\begin{array}{l} C a n y o n S e c t i o n = \frac{$ 4, 500, 000}{450} = $ 10, 000 \\ H i l l t o p S e c t i o n = \frac{$ 3, 000, 000}{150} = $ 20, 000 \end{array}$

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Answer 2

Question

Chapter 24, Problem 21E

To determine

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis.

To Calculate: Allocation of joint cost of land and improvement on value basis and average cost per lot

Expert Solution & Answer

Answer to Problem 21E

Solution:

Allocation of Joint Cost

$\begin{array}{l} C a n y o n S e c t i o n = 60 % o f 7500000 = $ 4, 500, 000 \\ H i l l t o p S e c t i o n = 40 % o f 7500000 = $ 3, 000, 000 \end{array}$

Average Cost per lot

$\begin{array}{l} C a n y o n S e c t i o n = \frac{$ 4, 500, 000}{450} = $ 10, 000 \\ H i l l t o p S e c t i o n = \frac{$ 3, 000, 000}{150} = $ 20, 000 \end{array}$

Explanation of Solution

Explanation:

Total or Joint Cost

$\begin{array}{l} T o t a l C o s t = C o s t o f L a n d + I m p r o v e m e n t C o s t \\ = 4000000 + 3500000 \\ = $ 7, 500, 000 \end{array}$

Market Value

$\begin{array}{l} M a r k e t V a l u e o f C a n y o n S e c t i o n = $ 55000 x 450 = $ 24, 750, 000 \\ M a r k e t V a l u e o f H i l l t o p S e c t i o n = $ 110000 x 150 = $ 16, 500, 000 \\ T o t a l M a r k e t V a l u e = 24750000 + 16500000 = $ 41, 250, 000 \end{array}$

Percentage of Market Value per Section

$\begin{array}{l} C a n y o n S e c t i o n = \frac{24750000}{41250000} = 60 % \\ H i l l t o p S e c t i o n = \frac{16500000}{41250000} = 40 % \end{array}$

Allocation of Joint Cost

$\begin{array}{l} C a n y o n S e c t i o n = 60 % o f 7500000 = $ 4, 500, 000 \\ H i l l t o p S e c t i o n = 40 % o f 7500000 = $ 3, 000, 000 \end{array}$

Average Cost per lot

$\begin{array}{l} C a n y o n S e c t i o n = \frac{$ 4, 500, 000}{450} = $ 10, 000 \\ H i l l t o p S e c t i o n = \frac{$ 3, 000, 000}{150} = $ 20, 000 \end{array}$

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Answer 3

Question

Chapter 24, Problem 21E

To determine

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis.

To Calculate: Allocation of joint cost of land and improvement on value basis and average cost per lot

Expert Solution & Answer

Answer to Problem 21E

Solution:

Allocation of Joint Cost

$\begin{array}{l} C a n y o n S e c t i o n = 60 % o f 7500000 = $ 4, 500, 000 \\ H i l l t o p S e c t i o n = 40 % o f 7500000 = $ 3, 000, 000 \end{array}$

Average Cost per lot

$\begin{array}{l} C a n y o n S e c t i o n = \frac{$ 4, 500, 000}{450} = $ 10, 000 \\ H i l l t o p S e c t i o n = \frac{$ 3, 000, 000}{150} = $ 20, 000 \end{array}$

Explanation of Solution

Explanation:

Total or Joint Cost

$\begin{array}{l} T o t a l C o s t = C o s t o f L a n d + I m p r o v e m e n t C o s t \\ = 4000000 + 3500000 \\ = $ 7, 500, 000 \end{array}$

Market Value

$\begin{array}{l} M a r k e t V a l u e o f C a n y o n S e c t i o n = $ 55000 x 450 = $ 24, 750, 000 \\ M a r k e t V a l u e o f H i l l t o p S e c t i o n = $ 110000 x 150 = $ 16, 500, 000 \\ T o t a l M a r k e t V a l u e = 24750000 + 16500000 = $ 41, 250, 000 \end{array}$

Percentage of Market Value per Section

$\begin{array}{l} C a n y o n S e c t i o n = \frac{24750000}{41250000} = 60 % \\ H i l l t o p S e c t i o n = \frac{16500000}{41250000} = 40 % \end{array}$

Allocation of Joint Cost

$\begin{array}{l} C a n y o n S e c t i o n = 60 % o f 7500000 = $ 4, 500, 000 \\ H i l l t o p S e c t i o n = 40 % o f 7500000 = $ 3, 000, 000 \end{array}$

Average Cost per lot

$\begin{array}{l} C a n y o n S e c t i o n = \frac{$ 4, 500, 000}{450} = $ 10, 000 \\ H i l l t o p S e c t i o n = \frac{$ 3, 000, 000}{150} = $ 20, 000 \end{array}$

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Answer 4

Question

Chapter 24, Problem 21E

To determine

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis.

To Calculate: Allocation of joint cost of land and improvement on value basis and average cost per lot

Expert Solution & Answer

Answer to Problem 21E

Solution:

Allocation of Joint Cost

$\begin{array}{l} C a n y o n S e c t i o n = 60 % o f 7500000 = $ 4, 500, 000 \\ H i l l t o p S e c t i o n = 40 % o f 7500000 = $ 3, 000, 000 \end{array}$

Average Cost per lot

$\begin{array}{l} C a n y o n S e c t i o n = \frac{$ 4, 500, 000}{450} = $ 10, 000 \\ H i l l t o p S e c t i o n = \frac{$ 3, 000, 000}{150} = $ 20, 000 \end{array}$

Explanation of Solution

Explanation:

Total or Joint Cost

$\begin{array}{l} T o t a l C o s t = C o s t o f L a n d + I m p r o v e m e n t C o s t \\ = 4000000 + 3500000 \\ = $ 7, 500, 000 \end{array}$

Market Value

$\begin{array}{l} M a r k e t V a l u e o f C a n y o n S e c t i o n = $ 55000 x 450 = $ 24, 750, 000 \\ M a r k e t V a l u e o f H i l l t o p S e c t i o n = $ 110000 x 150 = $ 16, 500, 000 \\ T o t a l M a r k e t V a l u e = 24750000 + 16500000 = $ 41, 250, 000 \end{array}$

Percentage of Market Value per Section

$\begin{array}{l} C a n y o n S e c t i o n = \frac{24750000}{41250000} = 60 % \\ H i l l t o p S e c t i o n = \frac{16500000}{41250000} = 40 % \end{array}$

Allocation of Joint Cost

$\begin{array}{l} C a n y o n S e c t i o n = 60 % o f 7500000 = $ 4, 500, 000 \\ H i l l t o p S e c t i o n = 40 % o f 7500000 = $ 3, 000, 000 \end{array}$

Average Cost per lot

$\begin{array}{l} C a n y o n S e c t i o n = \frac{$ 4, 500, 000}{450} = $ 10, 000 \\ H i l l t o p S e c t i o n = \frac{$ 3, 000, 000}{150} = $ 20, 000 \end{array}$

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Answer 5

Chapter 24, Problem 21E

To determine

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis.

To Calculate: Allocation of joint cost of land and improvement on value basis and average cost per lot

Expert Solution & Answer

Answer to Problem 21E

Solution:

Allocation of Joint Cost

$\begin{array}{l} C a n y o n S e c t i o n = 60 % o f 7500000 = $ 4, 500, 000 \\ H i l l t o p S e c t i o n = 40 % o f 7500000 = $ 3, 000, 000 \end{array}$

Average Cost per lot

$\begin{array}{l} C a n y o n S e c t i o n = \frac{$ 4, 500, 000}{450} = $ 10, 000 \\ H i l l t o p S e c t i o n = \frac{$ 3, 000, 000}{150} = $ 20, 000 \end{array}$

Explanation of Solution

Explanation:

Total or Joint Cost

$\begin{array}{l} T o t a l C o s t = C o s t o f L a n d + I m p r o v e m e n t C o s t \\ = 4000000 + 3500000 \\ = $ 7, 500, 000 \end{array}$

Market Value

$\begin{array}{l} M a r k e t V a l u e o f C a n y o n S e c t i o n = $ 55000 x 450 = $ 24, 750, 000 \\ M a r k e t V a l u e o f H i l l t o p S e c t i o n = $ 110000 x 150 = $ 16, 500, 000 \\ T o t a l M a r k e t V a l u e = 24750000 + 16500000 = $ 41, 250, 000 \end{array}$

Percentage of Market Value per Section

$\begin{array}{l} C a n y o n S e c t i o n = \frac{24750000}{41250000} = 60 % \\ H i l l t o p S e c t i o n = \frac{16500000}{41250000} = 40 % \end{array}$

Allocation of Joint Cost

$\begin{array}{l} C a n y o n S e c t i o n = 60 % o f 7500000 = $ 4, 500, 000 \\ H i l l t o p S e c t i o n = 40 % o f 7500000 = $ 3, 000, 000 \end{array}$

Average Cost per lot

$\begin{array}{l} C a n y o n S e c t i o n = \frac{$ 4, 500, 000}{450} = $ 10, 000 \\ H i l l t o p S e c t i o n = \frac{$ 3, 000, 000}{150} = $ 20, 000 \end{array}$

Answer 6

Chapter 24, Problem 21E

To determine

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis.

To Calculate: Allocation of joint cost of land and improvement on value basis and average cost per lot

Expert Solution & Answer

Answer to Problem 21E

Solution:

Allocation of Joint Cost

$\begin{array}{l} C a n y o n S e c t i o n = 60 % o f 7500000 = $ 4, 500, 000 \\ H i l l t o p S e c t i o n = 40 % o f 7500000 = $ 3, 000, 000 \end{array}$

Average Cost per lot

$\begin{array}{l} C a n y o n S e c t i o n = \frac{$ 4, 500, 000}{450} = $ 10, 000 \\ H i l l t o p S e c t i o n = \frac{$ 3, 000, 000}{150} = $ 20, 000 \end{array}$

Explanation of Solution

Explanation:

Total or Joint Cost

$\begin{array}{l} T o t a l C o s t = C o s t o f L a n d + I m p r o v e m e n t C o s t \\ = 4000000 + 3500000 \\ = $ 7, 500, 000 \end{array}$

Market Value

$\begin{array}{l} M a r k e t V a l u e o f C a n y o n S e c t i o n = $ 55000 x 450 = $ 24, 750, 000 \\ M a r k e t V a l u e o f H i l l t o p S e c t i o n = $ 110000 x 150 = $ 16, 500, 000 \\ T o t a l M a r k e t V a l u e = 24750000 + 16500000 = $ 41, 250, 000 \end{array}$

Percentage of Market Value per Section

$\begin{array}{l} C a n y o n S e c t i o n = \frac{24750000}{41250000} = 60 % \\ H i l l t o p S e c t i o n = \frac{16500000}{41250000} = 40 % \end{array}$

Allocation of Joint Cost

$\begin{array}{l} C a n y o n S e c t i o n = 60 % o f 7500000 = $ 4, 500, 000 \\ H i l l t o p S e c t i o n = 40 % o f 7500000 = $ 3, 000, 000 \end{array}$

Average Cost per lot

$\begin{array}{l} C a n y o n S e c t i o n = \frac{$ 4, 500, 000}{450} = $ 10, 000 \\ H i l l t o p S e c t i o n = \frac{$ 3, 000, 000}{150} = $ 20, 000 \end{array}$

Answer 7

Chapter 24, Problem 21E

To determine

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis.

To Calculate: Allocation of joint cost of land and improvement on value basis and average cost per lot

Answer 8

Expert Solution & Answer

Answer to Problem 21E

Solution:

Allocation of Joint Cost

$\begin{array}{l} C a n y o n S e c t i o n = 60 % o f 7500000 = $ 4, 500, 000 \\ H i l l t o p S e c t i o n = 40 % o f 7500000 = $ 3, 000, 000 \end{array}$

Average Cost per lot

$\begin{array}{l} C a n y o n S e c t i o n = \frac{$ 4, 500, 000}{450} = $ 10, 000 \\ H i l l t o p S e c t i o n = \frac{$ 3, 000, 000}{150} = $ 20, 000 \end{array}$

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Explanation:

Total or Joint Cost

$\begin{array}{l} T o t a l C o s t = C o s t o f L a n d + I m p r o v e m e n t C o s t \\ = 4000000 + 3500000 \\ = $ 7, 500, 000 \end{array}$

Market Value

$\begin{array}{l} M a r k e t V a l u e o f C a n y o n S e c t i o n = $ 55000 x 450 = $ 24, 750, 000 \\ M a r k e t V a l u e o f H i l l t o p S e c t i o n = $ 110000 x 150 = $ 16, 500, 000 \\ T o t a l M a r k e t V a l u e = 24750000 + 16500000 = $ 41, 250, 000 \end{array}$

Percentage of Market Value per Section

$\begin{array}{l} C a n y o n S e c t i o n = \frac{24750000}{41250000} = 60 % \\ H i l l t o p S e c t i o n = \frac{16500000}{41250000} = 40 % \end{array}$

Allocation of Joint Cost

$\begin{array}{l} C a n y o n S e c t i o n = 60 % o f 7500000 = $ 4, 500, 000 \\ H i l l t o p S e c t i o n = 40 % o f 7500000 = $ 3, 000, 000 \end{array}$

Average Cost per lot

$\begin{array}{l} C a n y o n S e c t i o n = \frac{$ 4, 500, 000}{450} = $ 10, 000 \\ H i l l t o p S e c t i o n = \frac{$ 3, 000, 000}{150} = $ 20, 000 \end{array}$

Answer 12

Ch. 24 - Prob. 1DQ Ch. 24 - What is the difference between operating...Ch. 24 - What are controllable costs?Ch. 24 - _________costs are not within the manager’s...Ch. 24 - Prob. 5DQ Ch. 24 - Prob. 6DQ Ch. 24 - Prob. 7DQ Ch. 24 - What is the difference between direct and indirect...Ch. 24 - Prob. 9DQ Ch. 24 - Prob. 10DQ

Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis. To Calculate: Allocation of joint cost of land and improvement on value basis and average cost per lot

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis. To Calculate: Allocation of joint cost of land and improvement on value basis and average cost per lot

Answer to Problem 21E

Explanation of Solution

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Chapter 24 Solutions

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis.

To Calculate: Allocation of joint cost of land and improvement on value basis and average cost per lot