Home Properties is developing a subdivision that includes 320 home lots. The 160 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 160 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $52,000 and for each Hilltop lot is $108,000. The developer acquired the land for $2,000,000 and spent another $3,400,000 on street and utilities improvements. Assign the joint land and improvement costs of $5,400,000 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 $68,000. This raw milk can be converted into the following types of milk with listed sales values.

Joint Products	Sales Value
Whole milk	$ 33,000
2% milk	52,800
Skim milk	46,200
Total	$ 132,000

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.

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 Joint Products Whole milk 2% milk Skim milk Totals $ Sales Value 0 Numerator Percent of Total Denominator % of Total O O O 0 Allocated Cost Gross Profit GA 0 GA O