Valix Finacc vol 1 Problem 7-36

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 7-36

Purchase price                                                                                                       26,850,000

Improving and subdividing cost                                                                            43,500,000

Total cost                                                                                                                70,350,000

                                                                                                             Sales price               Fraction              Cost

Group

    1      (20 x 3,000,000)                                       60,000,000                 60/105          40,200,000

    2      (10 x 2,500,000)                                       25,000,000                 25/105          16,750,000

    3      (10 x 2,000,000)                                       20,000,000                 20/105          13,400,000

                                                                        105,000,000                                    70,350,000

                                                                Cost per lot             Unsold                 Cost Group

     1     (40,200,000/20)                                         2,010,000                  5                10,050,000

     2     (16,750,000/10)                                         1,675,000                  4                  6,700,000

     3     (13,400,000/10)                                         1,340,000                  3                  4,020,000

                                                                                                                                                                        20,770,000