Toms River Developers purchased land for $1 million that can be divided into 800 lots. These lots are of different sizes and shapes and are sorted into three groups: A, B, and C.

A. Calculate the cost per lot utilizing the relative sales value method from the information below.

B. Manner of allocating Joint Costs in proportion to relative sales values of joint products. For example, joint products X and Y have a joint cost of $1200 and X sells for $70 while Y sells for$50.

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Lots Number of Lots 200 200 400 Sales Price Per Lot $5,000 $3,000 S2,250