a. If Elixir Company was able to sell all the lots except for 15 lots of Class C, how much is the cost of sales to be recognized for the year?b. What amount should be allocated as total cost of Class B lots under the Relative Sales Price method? Elixir Company bought a 10-hectare land in Novaliches to be improved, subdivided into lotsand eventually sold. Purchase price of the land was P5,800,000. Taxes and documentationexpenses on the transfer of the property amounted to P80,000. The lots were classified asfollows:Selling price per lot100,00080,00070,00060,000Number of lotsTotal clearing costNoneLot classA10100,000300,000800,000В20C40D50

Capital asset: Capital asset can be defined as the asset having useful life of more than one year…

a. If Elixir Company was able to sell all the lots except for 15 lots of Class C, how much is the cost of sales to be recognized for the year? b. What amount should be allocated as total cost of Class B lots under the Relative Sales Price method?

a. If Elixir Company was able to sell all the lots except for 15 lots of Class C, how much is the cost of sales to be recognized for the year? b. What amount should be allocated as total cost of Class B lots under the Relative Sales Price method?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Sales (S) Cost of Good Sold (COGS) Gross Profit (GP) Year 1 $ 614,405.00 $ 385,101.00 $ 229,304.00…

A: Gross profit percentage is calculated by dividing gross profit by sales revenue. The markup…

Q: 8.A company has cost of goods available for sale of $250,000, sales of $305,000, and a gross profit…

A: "As per guidelines, we will solve first question for you. If you want any specific question to be…

Q: If inventory is being valued at cost and the price level is steadily rising, which of the three…

A: Inventory can be defined as a form of asset which is held by a business firm for resale purposes.…

Q: ) What was Bellcamp's total sales, cost of goods sold, gross profit, and gross profit margin for…

A: Many Companies have different division , products, regions have Sales and then when its consolidated…

Q: The total asset turnover is calculated using which of the following formulas? Multiple Choice Cost…

A: The Total assets turnover ratio is calculated using the following formula Assets turnover ratio=…

Q: Net sales minus cost of good sold is equal to cost of ending inventory. T/F

A: The ending inventory is the amount of inventory left with business at year end.

Q: Which of the following recording procedures would result in the highest of goods sold for 2020?…

A: The correct answer is Option (a).

Q: Required: What was the actual purchase price per gallon? Note: Round your answer to 2 decimal…

A: In cost accounting, material variance analysis involves examining the difference between the actual…

Q: Find the sales tax and total sale. Item marked price Sales tax rate Sales tax $572.34 5.168% Item…

A: The item marked price excluded the sales tax, So the total sales price is the sum of the marked…

Q: Required: 1. Complete the following tabulation for each situation. In Situations A and B (prices…

A: Inventory Valuation is a method of calculating the value of stock at the end of an accounting…

Q: The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are…

Q: The cost of an item if the full amount had been paid at the time of sale is called the O A. down…

A: Total Price It is a full purchase price for purchasing the consumer item, excluding the sales tax…

Q: Required information ($ thousands) Net sales Cost of goods sold Current Year $ 801,810 392,887…

A: Cost of goods sold meaning:- The total cost of goods sold of the company is the sum of all expenses…

Q: Memphis Wholesale Market applies the lower of cost or net realizable valuation to individual…

A: The net realizable value is calculated as selling price minus costs to sell.

Q: How do i create an NPV graph on excel using these data: Unit Sale NPV…

A: With the help of the insert graph option in excel, you can create the NPV Graph using these data.

Q: Determine the Prior Year and Current Year common-size percents for cost of goods sold using net…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Provide Answer please

A: Here's a detailed explanation of each option and why the correct answer is $60:Understanding…

Q: Income is to be evaluated under four different situations as follows: a. Prices are rising: (1)…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. Using…

Q: Determine the Prior Year and Current Year common-size percents for cost of goods sold using net…

A: The ratio analysis helps to analyze the financial statements of the business on the basis of the…

Q: Determine the Prior Year and Current Year trend percents for net sales using the Prior Year as the…

A: Trend analysis is the tool to analyze the financial statements. It measures the proportion of each…

Q: Cost of Good Sold is the same under a periodic system and a perpetual system when an entity uses A.…

A: Cost of goods sold under periodic inventory method is determined on basis of occasional count.…

Q: Find the marked price and sales tax. Round to the nearest cent. Total Sale $378.17 Sales Tax Rate:…

A: The sale price includes the marked price and the sales tax. Sale price = Marked price + Sales tax

Q: Cost of Goods Sold (FIFO): Units Unit Cost

A: UnitsUnit costTotal 01-Apr 29 $ 9.00 $ 26112-Apr 39 $ 12.00 $…

Q: ior Year and Current Year commonsize percents for cost of goods sold using net sales as the base…

Q: Income is to be evaluated under four different situations as follows: a. Prices are rising: (1)…

A: Situation A: FIFO is used, and prices are rising.Beginning Inventory: 290 units @ $10 =…

Q: The cost of inventory currently owned by a firm is an example of a(n): a. opportunity cost. b. sunk…

A: Opportunity cost is the benefit forgone for accepting the next best alternative

Q: How much lower would taxable income be if LIFO is used rather than FIFO given the following?…

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the…

Question

a. If Elixir Company was able to sell all the lots except for 15 lots of Class C, how much is the cost of sales to be recognized for the year?

b. What amount should be allocated as total cost of Class B lots under the Relative Sales Price method?

Elixir Company bought a 10-hectare land in Novaliches to be improved, subdivided into lots
and eventually sold. Purchase price of the land was P5,800,000. Taxes and documentation
expenses on the transfer of the property amounted to P80,000. The lots were classified as
follows:
Selling price per lot
100,000
80,000
70,000
60,000
Number of lots
Total clearing cost
None
Lot class
A
10
100,000
300,000
800,000
В
20
C
40
D
50

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Do not give answer in image formate
Assume that markup is based on cost. Calculate the cost and selling price. Note: Round your answers to the nearest cent. Cost Selling price Dollar markup $ 6.00 Percent markup on cost 101.69 %
What is the total cost of an item that is priced $12.50 and is subject to 6% sales tax? Submit
Which of the 3 methods of inventory costing (Lifo, Fifo, or Average Cost) will result in the lowest annual income tax expense for the year if prices to acquire the inventory have been steadily rising during the year?
Find the marked price and sales tax. Total price Sales tax rate Marked price $403.61 5.9% Sales tax rate Marked price 5.9% Total price $403.61 (Round to the nearest cent.) Sales tax Sales tax $
If inventory is being valued at cost and the price level is steadily rising, which of the three methods of costing— FIFO, LIFO, or weighted average cost—will yield the lowest annual income tax expense? Explain.
Hi, How do I solve this?
. In addition to the purchase price, what additional expenditures does the companyinclude in the initial cost of merchandise?
When computing the cost-to-retail percentage for the average cost retail method, included in the denominator are: Multiple Choice Net markups and net markdowns. Neither net markups nor net markdowns. Net markups, but not net markdowns. Net markdowns, but not net markups.
18.Net realizable value is a. acquisition cost plus estimated costs to complete and sell b. estimated selling price less estimated cost to complete and sell c. estimated selling price less estimated costs to complete and sell and normal profit. d. estimated selling price.
The rate of markup on cost on a product selling at $64.50 is 45%. What is the cost of the product to the retailer? What is the rate of markup on selling price?
Compute a cost to retail percentage under the following conditions. Cost to retail percentage Excluding both markups and markdowns % Excluding markups but including markdowns % Excluding markdowns but including markups % Including both markdowns and markups %