Home Properties is developing a subdivision that includes...
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Accounting
Home Properties is developing a subdivision that includes 330 home lots. The 210 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 120 lots in the Hillop section offer unobstructed views. The expected selling price for each Canyon lot is $50,000 and for each Hilltop lot is $92,000. The developer acquired the land for $1,900,000 and spent another $1,600,000 on street and utilities improvements. Assign the joint land and improvement costs of $3,500,000 to the Canyon section and the Hilltop section using the value basis of allocation. (Do not round your intermediate calculations.) A dairy company processed raw milk for $60,500. This raw milk can be converted into the following types of milk with listed sales values. Use the sales value basis to (1) allocate the total cost of the raw milk to each type of milk and (2) determine the gross profit for each type of milk
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