Dillon Company pays $450,000 for real estate plus $23,850 in closing costs. The real estate consists of land appraised at $211,200; land improvements appraised at $67,200; and a building appraised at $201,600.

Requirement 1:
Allocate the total cost among the three purchased assets. (Round the percentage to a whole number. Fit the building percentage so that the total equals 100%. Round each apportioned cost to a whole number. Fit the building amount so that the sum of your apportionment equals the total you have entered. Omit the "$" and "%" signs in your response.)

Appraised value % of Total Apportioned cost
Land $ 211,200 44 % $ 208,494
Land improvements 67,200 14 66,339
Building 201,600 42 199,017
Totals $ 480,000 100 % $ 473,850
.. Hi I hot this question wrong. They gave me all the answers but I don't know how to find aportioned cost. How do you find it

Any time you want to proporation something (called pro-rating), it always works the same way. You are trying to pro-rate one number over two or more categories.

In this case you are trying to pro-rate the costs (real estate plus closing) over 3 items it included (land, improvement & building). So you take the 3 items and add them up for a total. You then figure out the proportion each one is of that total by dividing it by the total. (i.e. what is the proporation of the land out of the total of the land, improvements and building?)

You then take that proporation and apply it to your one number by multiplying it back out.

Easy example: you & I do a job together. I do 5 hours of work and you do 7 hours. It pays $200 and we have to pro-rate it by the work we did. So I did a 5/12 proportion and you did a 7/12 proportion. I take 5/12 on the calculation to get the proproation, just leave it in the calcuator, and then multiply that by the $200 to get the example same proportion. The I take 7/12 for yours and again multiply it by $200 to get your proportion.

Take a crack at this. If you learn how to pro-rate you can use it for anything, in any subject.

a company has two production departments machinery and finishing.it has two service department stores and maintenance.production overheads are as follows,
rent and rate 30400
lighting and heating 24320
Depreciation of machinery 28000
insurance of machinery 7000
The following is also available,
machine 200
finishing 300
stores 100
maintenance 150
number of production staff,
machining 9
finishing 7
value of machinery (pouds000)
machining 15
finishing 10
stores 4
maintenance 6
Production staff expected to work 38 hours per week and 48 weeks per year.prepare an overhead apportionment schedule showing the basis of apportionment for each overhead.