Question: 2: Relative sales value method. Armstrong Company purchased a plot of ground for $800,000 and spent $2,100,000 in developing it for building lots. The lots

2: Relative sales value method.

Armstrong Company purchased a plot of ground for $800,000 and spent $2,100,000 in developing it for building lots. The lots were classified into Highland, Midland, and Lowland grades, to sell at $100,000, $75,000, and $50,000 each, respectively.

Instructions: Complete the table below to allocate the cost of the lots using a relative sales value method.

Grade	#ofLots	Selling Price	Total Revenue	% of Total Sales	TotalCost	CostPerLot
Highland	20
Midland	40
Lowland	100
	160		$		$	$

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

F. Aber company manufactures one product . On dec 31,2016 Aber adopted the dollar value LIFO Inventory method. The inventory on that date using the dollar value LIFO inventory method was $900,000...

Sandhill Realty Company purchased a plot of ground for $1,940,000 and spent $4,300,000 in developing it for building lots. The lots were classified into Highland, Midland, and Lowland grades, to sell...

Sunland Realty Company purchased a plot of ground for $1,740,000 and spent $4,350,000 in developing it for building lots. The lots were classified into Highland, Midland, and Lowland grades, to sell...

View Policies Current Attempt in Progress Wildhorse Realty Company purchased a plot of ground for $1.800.000 and spent $3,700,000 in developing it for building lots. The lots were classified into...

View Policies Current Attempt in Progress Oriole Realty Company purchased a plot of ground for $1,770,000 and spent $4,200,000 in developing it for building lots. The lots were classified into...

Current Attempt in Progress Blossom Realty Company purchased a plot of ground for $1,500,000 and spent $3,500,000 in developing it for building lots. The lots were classied into Highland, Midland,...

G. Doran realty company purchased a plot of ground for 1,900,000 and spent 4,100,000 in developing it for building lots. The lots were classified into Highland, Midland, and lowland grades to sell at...

Problem 3 Gibbs Manufacturing Co. was incorporated on 1/2/12 but was unable to begin manufacturing activities until 8/1/12 because new factory facilities were not completed until that date. The Land...

Adler Realty Company purchased a plot of ground for $800,000 and spent $2,100,000 in developing it for building lots. The lots were classified into Highland, Midland, and Lowland grades, to sell at...

please help me Wildhorse Realty Company purchased a plot of ground for $1,800,000 and spent $3,700,000 in developing it for building lots. The lots were classified into Highland, Midland, and Lowland...

On March 10, John Carver executed his will, which was witnessed by William Hobson and Sam Witt. By his will, Carver devised his farm, Stonecrest, to his nephew, Roy White. The residue of his estate...

Water is flowing from a hose attached to a water main at 400 kPa gauge. A child places his thumb to cover most of the hose outlet, causing a thin jet of high-speed water to emerge. If the hose is...

The expected number of claims on a group dental policy is 3 0 0 . Ground - up severity is given by the following table. Severity Probability 4 0 0 . 2 5 8 0 0 . 2 5 1 2 0 0 . 2 5 2 0 0 0 . 2 5 You...

As a marketing manager, use the GAPS model to explain the various challenges that can affect the quality levels of service delivery in by your company by your co

(Appendices) James, age 28, was laid off by an auto manufacturer when the firm began retooling to produce a new model car. He knows he will be called back to work when the model changeover is...

(Appendices) What are sales allowances? How do sales allowances differ from sales discounts? LO22

(Appendices) One of the most critical problems in unemployment compensation at the present time is the inadequate financing of benefits, which caused the majority of states to deplete their trust...