Question

G. Doran realty company purchased a plot of ground for 1,900,000 and spent 4,100,000 in developing it for building lots. The lots were classified into Highland, Midland, and lowland grades to sell at 120,000, 90,000 and 60,000 each respectively. Comple the table to allocate the cost of the lots using a realtive sales value method.

PRUBLEM G: Doran Realty Company purchased a plot of ground for $1,900,000 and spent $4,100,000 in developing it for building lots. The lots were classified into Highland, Midland, and Lowland grades, to sell at $120,000 $90,000 and $60,000 each, respectively. Instructions Complete the table below to allocate the cost of the lots using a relative sales value method. Total Revenue % of Total Sales Apportioned Cost Total Per Lot Grade Highland Midland Lowland No. of Lots 20 40 100 160 Selling Price $ $ $

Answer 1

table

	No. of	Selling	Total	% of	Apportioned Cost
Grade	Lots	Price	Revenue	Total Sales	Total	Per lot
Highland	20	120000	2400000	20%	1200000	60000
Midland	40	90000	3600000	30%	1800000	45000
Lowland	100	60000	6000000	50%	3000000	30000
	160		12000000