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

Canyon Section = 60% of 7500000 = $4,500,000 Hilltop Section = 40% of 7500000 = $3,000,000

Average Cost per lot

Canyon Section = $4,500,000450 = $10,000 Hilltop Section = $3,000,000150 = $20,000

Explanation of Solution

Total or Joint Cost

Total Cost = Cost of Land + Improvement Cost = 4000000 + 3500000 = $7,500,000

Market Value

Market Value of Canyon Section = $55000 x 450 = $24,750,000 Market Value of Hilltop Section = $110000 x 150 = $16,500,000 Total Market Value = 24750000 + 16500000 = $41,250,000

Percentage of Market Value per Section

Canyon Section = 2475000041250000 = 60% Hilltop Section = 1650000041250000 = 40%

Allocation of Joint Cost

Canyon Section = 60% of 7500000 = $4,500,000 Hilltop Section = 40% of 7500000 = $3,000,000

Average Cost per lot

Canyon Section = $4,500,000450 = $10,000 Hilltop Section = $3,000,000150 = $20,000

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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

Canyon Section = 60% of 7500000 = $4,500,000 Hilltop Section = 40% of 7500000 = $3,000,000

Average Cost per lot

Canyon Section = $4,500,000450 = $10,000 Hilltop Section = $3,000,000150 = $20,000

Explanation of Solution

Total or Joint Cost

Total Cost = Cost of Land + Improvement Cost = 4000000 + 3500000 = $7,500,000

Market Value

Market Value of Canyon Section = $55000 x 450 = $24,750,000 Market Value of Hilltop Section = $110000 x 150 = $16,500,000 Total Market Value = 24750000 + 16500000 = $41,250,000

Percentage of Market Value per Section

Canyon Section = 2475000041250000 = 60% Hilltop Section = 1650000041250000 = 40%

Allocation of Joint Cost

Canyon Section = 60% of 7500000 = $4,500,000 Hilltop Section = 40% of 7500000 = $3,000,000

Average Cost per lot

Canyon Section = $4,500,000450 = $10,000 Hilltop Section = $3,000,000150 = $20,000

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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

Canyon Section = 60% of 7500000 = $4,500,000 Hilltop Section = 40% of 7500000 = $3,000,000

Average Cost per lot

Canyon Section = $4,500,000450 = $10,000 Hilltop Section = $3,000,000150 = $20,000

Explanation of Solution

Total or Joint Cost

Total Cost = Cost of Land + Improvement Cost = 4000000 + 3500000 = $7,500,000

Market Value

Market Value of Canyon Section = $55000 x 450 = $24,750,000 Market Value of Hilltop Section = $110000 x 150 = $16,500,000 Total Market Value = 24750000 + 16500000 = $41,250,000

Percentage of Market Value per Section

Canyon Section = 2475000041250000 = 60% Hilltop Section = 1650000041250000 = 40%

Allocation of Joint Cost

Canyon Section = 60% of 7500000 = $4,500,000 Hilltop Section = 40% of 7500000 = $3,000,000

Average Cost per lot

Canyon Section = $4,500,000450 = $10,000 Hilltop Section = $3,000,000150 = $20,000

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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

Canyon Section = 60% of 7500000 = $4,500,000 Hilltop Section = 40% of 7500000 = $3,000,000

Average Cost per lot

Canyon Section = $4,500,000450 = $10,000 Hilltop Section = $3,000,000150 = $20,000

Explanation of Solution

Total or Joint Cost

Total Cost = Cost of Land + Improvement Cost = 4000000 + 3500000 = $7,500,000

Market Value

Market Value of Canyon Section = $55000 x 450 = $24,750,000 Market Value of Hilltop Section = $110000 x 150 = $16,500,000 Total Market Value = 24750000 + 16500000 = $41,250,000

Percentage of Market Value per Section

Canyon Section = 2475000041250000 = 60% Hilltop Section = 1650000041250000 = 40%

Allocation of Joint Cost

Canyon Section = 60% of 7500000 = $4,500,000 Hilltop Section = 40% of 7500000 = $3,000,000

Average Cost per lot

Canyon Section = $4,500,000450 = $10,000 Hilltop Section = $3,000,000150 = $20,000

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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

Canyon Section = 60% of 7500000 = $4,500,000 Hilltop Section = 40% of 7500000 = $3,000,000

Average Cost per lot

Canyon Section = $4,500,000450 = $10,000 Hilltop Section = $3,000,000150 = $20,000

Explanation of Solution

Total or Joint Cost

Total Cost = Cost of Land + Improvement Cost = 4000000 + 3500000 = $7,500,000

Market Value

Market Value of Canyon Section = $55000 x 450 = $24,750,000 Market Value of Hilltop Section = $110000 x 150 = $16,500,000 Total Market Value = 24750000 + 16500000 = $41,250,000

Percentage of Market Value per Section

Canyon Section = 2475000041250000 = 60% Hilltop Section = 1650000041250000 = 40%

Allocation of Joint Cost

Canyon Section = 60% of 7500000 = $4,500,000 Hilltop Section = 40% of 7500000 = $3,000,000

Average Cost per lot

Canyon Section = $4,500,000450 = $10,000 Hilltop Section = $3,000,000150 = $20,000

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

Canyon Section = 60% of 7500000 = $4,500,000 Hilltop Section = 40% of 7500000 = $3,000,000

Average Cost per lot

Canyon Section = $4,500,000450 = $10,000 Hilltop Section = $3,000,000150 = $20,000

Explanation of Solution

Total or Joint Cost

Total Cost = Cost of Land + Improvement Cost = 4000000 + 3500000 = $7,500,000

Market Value

Market Value of Canyon Section = $55000 x 450 = $24,750,000 Market Value of Hilltop Section = $110000 x 150 = $16,500,000 Total Market Value = 24750000 + 16500000 = $41,250,000

Percentage of Market Value per Section

Canyon Section = 2475000041250000 = 60% Hilltop Section = 1650000041250000 = 40%

Allocation of Joint Cost

Canyon Section = 60% of 7500000 = $4,500,000 Hilltop Section = 40% of 7500000 = $3,000,000

Average Cost per lot

Canyon Section = $4,500,000450 = $10,000 Hilltop Section = $3,000,000150 = $20,000

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

Canyon Section = 60% of 7500000 = $4,500,000 Hilltop Section = 40% of 7500000 = $3,000,000

Average Cost per lot

Canyon Section = $4,500,000450 = $10,000 Hilltop Section = $3,000,000150 = $20,000

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Total or Joint Cost

Total Cost = Cost of Land + Improvement Cost = 4000000 + 3500000 = $7,500,000

Market Value

Market Value of Canyon Section = $55000 x 450 = $24,750,000 Market Value of Hilltop Section = $110000 x 150 = $16,500,000 Total Market Value = 24750000 + 16500000 = $41,250,000

Percentage of Market Value per Section

Canyon Section = 2475000041250000 = 60% Hilltop Section = 1650000041250000 = 40%

Allocation of Joint Cost

Canyon Section = 60% of 7500000 = $4,500,000 Hilltop Section = 40% of 7500000 = $3,000,000

Average Cost per lot

Canyon Section = $4,500,000450 = $10,000 Hilltop Section = $3,000,000150 = $20,000

Answer 12

Ch. 24 - Prob. 1DQ Ch. 24 - Prob. 2DQ Ch. 24 - Prob. 3DQ Ch. 24 - Prob. 4DQ Ch. 24 - Prob. 5DQ Ch. 24 - Prob. 6DQ Ch. 24 - Prob. 7DQ Ch. 24 - Prob. 8DQ 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