Solution-Allocating joint costs, Assign the joint land and

Allocating joint costs

Assignment Help Managerial Accounting

Reference no: EM13486819

Allocating Joint Costs

Windsboro Properties is developing a subdivision that includes 400 home lots. The 300 lots in the Canyon section are below a ridge and do not have view of the neighboring canyons and hill; the 100 lots in the Hilltop section offer unobstructed views.

The expected selling price for each Canyon lot is $50,000 and for each Hilltop lot is $90,000. The developer acquired the land for $5,000,000 and spent another $2,000,000 on street and utilities improvements.

Required:
1. Assign the joint land and improvement costs to the lots using the value basis of allocation.
2. Compute the average cost per lot in the Canyon section and in the Hilltop section.
3. Compute the average gross profit realized on the sales of Canyon lots and the Hilltop lots.

Reference no: EM13486819

Questions Cloud

Explain what is the enthalpy of the reaction : The complete combustion of hydrogen, H2(g), to form H2O(l) at constant pressure, releases 285.8 kJ of heat per mole of H2(g). -------- H2(g) + 1/2O2(g) ? H2O(l). What is the enthalpy of the reaction

Find the atomic mass number of the unknown nucleus : An unknown nucleus has twice the volume of a nucleus with 51 nucleons. What is the atomic mass number of the unknown nucleus

Determine the unit product cost of one pound : Determine the total amount of manufacturing overhead cost assigned to the Kenya Dark coffee and to the Viet Select coffee for the year.

Explain hydrogenation of carbon double bonds : Hydrogenation of carbon double bonds C=C (i.e. adding a hydrogen on each carbon atom and thus reducing the double bond into a single bond: H-C-C-H) is a very common process in organic and polymer chemistry.

Allocating joint costs : Assign the joint land and improvement costs to the lots using the value basis of allocation and compute the average cost per lot in the Canyon section and in the Hilltop section.

Compute the cost per cost driver : Compute the cost per cost driver for each of the three cost centers and use the results from part 1 to allocate costs from each of the three cost centers to both financial planning and tax preparation.

Define the heat capacity of the bomb calorimeter : When 0.564g of biphenyl (C12H10) undergoes combustion in a bomb calorimeter, the temperature rises from 25.3C to 29.8.C Find Delta Erxn for the combustion of biphenyl in kJ/mol biphenyl. The heat capacity of the bomb calorimeter, determined in a s..

What is the total cost of serving each of following party : Why do the costs per diner for the three different parties differ from each other and from the overall average cost of $16 perdiner?

Find the precise energy of the electron : An electron that has an energy of approximately 23 eV moves between rigid walls 1.8 nm apart. Find the precise energy of the electron

User Account

All Pages

Allocating joint costs

Reference no: EM13486819

Reference no: EM13486819

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT