Top Posters
Since Sunday
p
4
h
4
c
4
d
3
3
c
3
t
3
u
3
A
3
B
3
j
3
s
3
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
calebmullins201 calebmullins201
wrote...
Go to Answer
Posts: 296
Rep: 0 0
6 years ago
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.
Read 60 times
1 Reply
Replies
Answer verified by a subject expert
mentment
wrote...
#1
Posts: 198
Rep: 42 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
1

Related Topics

calebmullins201 Author
wrote...

6 years ago
Thanks for your help!!
annielin111
wrote...

Yesterday
Thanks
Gorgio_De
wrote...

2 hours ago
Helped a lot
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1196 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 2173
  
 643
  
 514
Your Opinion
Where do you get your textbooks?
Votes: 447
Previous poll results: Which country would you like to visit for its food?