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Title: Johnson Realty bought a 2,000-acre island for $10,000,000 and divided it into 200 equal size lots. Post by: calebmullins201 on Jul 1, 2018 Johnson Realty bought a 2,000-acre island for $10,000,000 and divided it into 200 equal size lots.
As the lots are sold, they are cleared at an average cost of $5,000. Storm drains and driveways are installed at an average cost of $8,000 per site. Sales commissions are 10% of selling price. Administrative costs are $850,000 per year. The average selling price was $160,000 per lot during 20X5 when 50 lots were sold. During 20X6, the company bought another 2,000-acre island and developed it exactly the same way. Lot sales in 20X6 totaled 300 with an average selling price of $160,000. All costs were the same as in 20X5. Required: Prepare income statements for both years using both absorption and variable costing methods. Title: Johnson Realty bought a 2,000-acre island for $10,000,000 and divided it into 200 equal size lots. Post by: ment on Jul 1, 2018 Content hidden
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