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Natalka [10]
3 years ago
8

Heart & Home Properties is developing a subdivision that includes 600 home lots. The 450 lots in the Canyon section are belo

w in ridge and do not have views of the neighboring Canyon and hills: the 150 lots in the Hilltop section after unobstructed views. The excepted selling price for each Canyon lot is $55, 000 and for each Hilltop lot is $110, 000. The developer acquired the land for $4, 000, 000 and spent another $3, 500, 000 on street and utilities improvements. Assign the joint land and improvement costs to the lots using the value basis of allocation and determine the average costs per lot.
Business
1 answer:
Sophie [7]3 years ago
6 0

Answer:

Each Canyon lot will cost = $10,000, total costs associated to the 450 Canyon lots = $4,500,000

Each Hilltop lot will cost = $20,000, total costs associated to the 150 Hilltop lots = $3,000,000

Explanation:

When you allocate joint costs using the value basis method, the costs will be allocated to the different products using their sales value:

total costs = $4,000,000 + $3,500,000 = $7,500,000

total sales value = (450 lots x $55,000) + (150 lots x $110,000) = $24,750,000 + $16,500,000 = $41,250,000

total costs allocated per $1 of sales value = $7,500,000 / $41,250,000 = $0.181818

Each Canyon lot will cost = $0.18181818 x $55,000 = $10,000, total costs associated to the 450 Canyon lots = $4,500,000

Each Hilltop lot will cost = $0.18181818 x $110,000 = $20,000, total costs associated to the 150 Hilltop lots = $3,000,000

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Answer:

The investor will pay up the rereofitted pumps in a period of 22.52 months.

Explanation:

<em><u>First,</u></em> we solve for the amount of profit generate per month:

21,000 gallons a month x $0.09 per gallon = $1,890

Now, we calcualte the time at which an monthly income of 1890 discounted at 2% per month matches a present value of 34,000

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  $1,890.00

time    n

rate 0.02

PV $34,000.0000

1890 \times \frac{1-(1+0.02)^{-n} }{0.02} = 34000\\

(1+0.02)^{-n}= 1-\frac{34000\times0.02}{1890}

(1+0.02)^{-n}=  0.64021164

We use logarithmics properties to solve for n:

-n= \frac{log0.64021164021164}{log(1+0.02)

-22.52006579

n = 22.5200 = 22 and a half month.

7 0
3 years ago
If abc company earned $280,000 in net income and paid cash dividends of $40,000, what are abc's earnings per share if it has 80,
Nadya [2.5K]
<span>To find earnings per share, simply divide the company's net income by the number of shares that are outstanding. In this case, the values are $280,000/80,000. This gives a value of $3.50 for the earnings per share outstanding. Dividends, in this case, are not necessary for the calculation.</span>
3 0
3 years ago
The theory of ______ states that the prices of tradable goods, when expressed in a common currency, will tend to equalize across
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<em>Hope this helped! :)</em>
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Select the items that describe how business investments can cause economic growth.
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3 years ago
Inventory information for Part 311 of Whispering Corp. discloses the following information for the month of June.
bearhunter [10]

Answer:

FIFO: ending inventory: $9,528  COGS: $ 14,452

LIFO: ending inventory: $ 8,422 COGS: $ 15,558 (periodic)

LIFO:  ending inventory $ 9,035 COGS ·$ 14,945 (perpetual)

<em />

Explanation:

June   1     Balance 304 units @ $13   3, 952

June  11 Purchased 804 units @ $15  12,060

June 20 Purchased 498 units @ $16<u>  7, 968   </u>

Tota units 1,606 Cost available:         23,980

June 10 Sold 205 units @ $30

June 15 Sold 504 units @ $32

June 27 Sold 295 units @ $34

Total units: 1,004 units

<u></u>

Ending Inventory units: 1,606 - 1,004 = 602

<u>FIFO:</u>

first units are sold while last are ending inventory.

As we always pick from chronological order is the same under perpetual or periodic method.

<u><em>Ending Inventory:</em></u>     602 units

June 20 Purchased 498 units @ $16   7, 968   (602 - 498 = 104)

June  11 Purchased   104 units @ $15 <u>  1, 560    </u>

                      Total:                               9,528

<u><em>COGS:</em></u> Difference between cost available and ending inventory:

23,980 - 9,528 = 14,452

<u>LIFO:</u>

first units are part of ending inventory. As the units aren't picked in chronological order the values cahnges under perpetual and periodic method.

<u>periodic ending inventory:</u>

June   1     Balance 304 units @ $13   3, 952 (602 - 304 = 298)

June  11 Purchased 298 units @ $15<u>   4,470   </u>

                               Total                      8,422

COGS: 23,980 - 8,422 = 15,558

<u>perpetual method:</u>

Inventory after 1st sale: 304 - 205 = 99 units at 13

Inventory after 2nd sale.

99 untis at 13

804-504 = 300 units at 15

Inventory after 3rd sale.

99 untis at 13                           1,287

300 units at 15                        4,500

498 - 295 = 203 units at 16 <u>   3,248   </u>

<em>ending inventory:                  9,035</em>

<em>COGS: 23,980 - 9,035 = 14,945</em>

8 0
3 years ago
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