On August 30, 2020, AAA Company purchased a tract of land for P12,000,000. AAA incurred additional cost of P3,000,000 during the remainder of 2020 in preparing the land for sale. The tract was subdivided into residential lots as follows: Lot class Number of lots Sales price per lot A 100 240,000 B 100 160,000 C 200 100,000 Using the relative sales value method, what amount of cost should be allocated to Class C lots?
On August 30, 2020, AAA Company purchased a tract of land for P12,000,000. AAA incurred additional cost of P3,000,000 during the remainder of 2020 in preparing the land for sale. The tract was subdivided into residential lots as follows: Lot class Number of lots Sales price per lot A 100 240,000 B 100 160,000 C 200 100,000 Using the relative sales value method, what amount of cost should be allocated to Class C lots?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
50.On August 30, 2020, AAA Company purchased a tract of land for P12,000,000. AAA incurred additional cost of P3,000,000 during the remainder of 2020 in preparing the land for sale. The tract was subdivided into residential lots as follows:
Lot class Number of lots Sales price per lot
A 100 240,000
B 100 160,000
C 200 100,000
- Using the relative sales value method, what amount of cost should be allocated to Class C lots?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education