A company purchases a 19,320-square-foot building for $345,000. The building has two separate rental units. Unit A, which has the desirable location on the corner and contains 2,520 square feet, will be rented for $1.00 per square foot. Unit B contains 16,800 square feet and will be rented for $0.60 per square foot. How much of the joint cost should be allocated to Unit A and to Unit B using the value basis of allocation? Unit A Unit B Totals Rental value $ $ Percent of rental value Numerator Denominator % of Mkt Value 2,520 $ 2,520 $ 12,600 12,600 10,080 12,600 10,080 0.00% Joint Cost Allocated cost

A company purchases a 19,320-square-foot building for $345,000. The building has two separate rental units. Unit A, which has the desirable location on the corner and contains 2,520 square feet, will be rented for $1.00 per square foot. Unit B contains 16,800 square feet and will be rented for $0.60 per square foot. How much of the joint cost should be allocated to Unit A and to Unit B using the value basis of allocation? Unit A Unit B Totals Rental value $ $ Percent of rental value Numerator Denominator % of Mkt Value 2,520 $ 2,520 $ 12,600 12,600 10,080 12,600 10,080 0.00% Joint Cost Allocated cost

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 13E

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QS 22-18C Joint cost allocation LO C3 A company purchases a 10,020-square-foot commercial building for $325,000 and spends an additional $50,000 to divide the space into two separate rental units and prepare it for rent. Unit A, which has the desirable location on the corner and contains 3,340 square feet, will be rented for $1.00 per square foot. Unit B contains 6,680 square feet and will be rented for $0.75 per square foot.How much of the joint cost should be assigned to Unit B using the value basis of allocation?
Exercise 22-22A (Algo) Assigning joint costs LO C2 Home Properties is developing a subdivision that includes 420 home lots. The 240 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 180 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $54,000 and for each Hilltop lot is $92,000. The developer acquired the land for $2,000,000 and spent another $2,400,000 on street and utilities improvements. Assign the joint land and improvement costs of $4,400,000 to the Canyon section and the Hilltop section using the value basis of allocation. (Do not round your intermediate calculations.) Canyon section Hilltop section Totals Sales Value Numerator Percent of Sales Value Denominator % of Sales Value 0 0 0 Cost to Allocate Allocated Cost Quantity of Lots
Exercise 22-22A (Algo) Assigning Joint costs LO C2 Home Properties is developing a subdivision that includes 410 home lots. The 180 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 230 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $47,000 and for each Hilltop lot is $96,000. The developer acquired the land for $2,400,000 and spent another $1,200,000 on street and utilities improvements. Assign the joint land and improvement costs of $3,600,000 to the Canyon section and the Hilltop section using the value basis of allocation. Note: Do not round your intermediate calculations. Canyon section Hilltop section Totals Sales Value Numerator Percent of Sales Value Denominator % of Sales Value 0 0 0 Check my wc Cost to Allocate Allocated Cost
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O d. Establishing goals Almu O e. Choosing among alternatives 128 Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $1,000 and the total manufacturing overhead cost is $1,220, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2.600, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest ($) value) Finish a O a. 60 О. 30 Oc 38 O d. 54 O e. None of the given answers NEXT PAGE IOUS PAGE ACCT2121 Origin Ggeneral-chat ASUS TUF GAML
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Case 17-36 Comprehensive Case on Joint Cost Allocation (LO 17-4, 17-5) Valdosta Chemical Company manufactures two industrial chemical products in a joint process. In May, 20,000 gallons of input costing $62,000 were processed at a cost of $158,000. The joint process resulted in 15,000 pounds of Resoline and 5,000 pounds of Krypto. Resoline sells for $20 per pound, and Krypto sells for $40 per pound. Management generally processes each of these chemicals further in separable processes to produce more refined chemical products. Resoline is processed separately at a cost of $6 per pound. The resulting product, Resolite, sells for $34 per pound. Krypto is processed separately at a cost of $10 per pound. The resulting product, Kryptite, sells for $95 per pound. Required: 2-a. Allocate the company's joint production costs for May using the physical-units method. 2-b. Allocate the company's joint production costs for May using the relative-sales-value method. 2-c. Allocate the company's joint…