orangutan Corp purchases land worth $2,500,000 to be developed into lottle home lots. The lots will be allocated into one of three categories: lakefront, lakeview, and standard. Lakeside expects that half of the little home lots will be lakefront and sell for $26,000, 30% are lakeview and sell for $10,000 and the remaining lots are priced at $4,500 each. The tract of land is expected to produce 300 lots. Instructions a) Using the relative sales value method calculate the total the inventory value that should be assigned to each category of lots. b) Assume that by the end of year one Lakeside has sold all of its lakefront and lakeview lots. What is the company's gross profit?

orangutan Corp purchases land worth $2,500,000 to be developed into lottle home lots. The lots will be allocated into one of three categories: lakefront, lakeview, and standard. Lakeside expects that half of the little home lots will be lakefront and sell for $26,000, 30% are lakeview and sell for $10,000 and the remaining lots are priced at $4,500 each. The tract of land is expected to produce 300 lots. Instructions a) Using the relative sales value method calculate the total the inventory value that should be assigned to each category of lots. b) Assume that by the end of year one Lakeside has sold all of its lakefront and lakeview lots. What is the company's gross profit?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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