PSN asting, 10 Question 1 Cheyenne Realty Corporation purchased a tract of unimp
ID: 2558325 • Letter: P
Question
PSN asting, 10 Question 1 Cheyenne Realty Corporation purchased a tract of unimproved land for $54,000. This land was improved and subdivided into building lots at an additional cost of $29,000. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. No. of Lots Price per Lot $3,300 4,400 2,640 Group 17 19 Operating expenses for the year allocated to this project total $18,000. Lots unsold at the year-end ware Group 1 Group 2 Group 3 5 lots 7 lots 2 lots operation to date. (Round ratios for computational purposes to 4 decimal places, e-g- At the end of the fiscal year Cheyenne Realty Corporation instructs you to arrive at the 78723490 and final answer to 0 decimal places, eg,5,845) Net income SAVE FOR LATER SUBMIT ANSWER Question Attempts: 0 of 6 usedExplanation / Answer
no of groups
no of lots
X
price per lot
=
Selling price
Relative sale price
X
total cost
=
cost allocated
cost per lot = cost allocated/no of lots
1
9
X
3300
=
29700
29700/154660
X
83000
=
15938.8336
1770.9815
2
17
X
4400
=
74800
74800/154660
X
83000
=
40142.2475
2361.3087
3
19
X
2640
=
50160
50160/154660
X
83000
=
26918.9189
1416.7852
154660
Group
lots sold
price per lot
=
total sales
cost per lot
total cost of lot sold
1
5
3300
=
16500.00
1770.98151
8854.90754
2
7
4400
=
30800.00
2361.30868
16529.16074
3
2
2640
=
5280.00
1416.78521
2833.57041
total sales
52580.00
28217.63869
calculation of net income
sales
52580
less cost of lots sold
28217.6387
gross profit
24362.3613
expenses
18000
Net income
6362
no of groups
no of lots
X
price per lot
=
Selling price
Relative sale price
X
total cost
=
cost allocated
cost per lot = cost allocated/no of lots
1
9
X
3300
=
29700
29700/154660
X
83000
=
15938.8336
1770.9815
2
17
X
4400
=
74800
74800/154660
X
83000
=
40142.2475
2361.3087
3
19
X
2640
=
50160
50160/154660
X
83000
=
26918.9189
1416.7852
154660
Group
lots sold
price per lot
=
total sales
cost per lot
total cost of lot sold
1
5
3300
=
16500.00
1770.98151
8854.90754
2
7
4400
=
30800.00
2361.30868
16529.16074
3
2
2640
=
5280.00
1416.78521
2833.57041
total sales
52580.00
28217.63869
calculation of net income
sales
52580
less cost of lots sold
28217.6387
gross profit
24362.3613
expenses
18000
Net income
6362
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