Ponderosa Development Corporation (PDC) is a small real estate developer that builds only one style of house. The selling price of the house is $115,000. Land for each house costs $55,000 and lumber, supplies and other materials run another $28,000 per house. Total labor costs are approximately $20,000 per house. Ponderosa leases office space for $2000 per month. The cost of office supplies, utilities and leased equipment runs another $3000 per month. The one sales person of PDC is paid a commission of $2000 on the sale of each house. PDC has a seven permanent employees whose monthly salaries is given below

Ponderosa Development Corporation (PDC) is a small real estate developer that builds only one style of house. The selling price of the house is $115,000. Land for each house costs $55,000 and lumber, supplies and other materials run another $28,000 per house. Total labor costs are approximately $20,000 per house. Ponderosa leases office space for $2000 per month. The cost of office supplies, utilities and leased equipment runs another $3000 per month. The one sales person of PDC is paid a commission of $2000 on the sale of each house. PDC has a seven permanent employees whose monthly salaries is given below

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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