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Question - Larsen Realty Corporation purchased a tract of unimproved land for $3,000 in 2009. This land was improved and subdivided into building lots at an additional cost of $1,000 in 2009. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows.
Group
No. of Lots
Price per Lot
1
8
$2,000
2
13
$3,000
Larsen starts selling those lots in 2010. Lots unsold at the end of 2010 were as follows.
Group 1 4 lots
Group 2 6 lots
Using relative sales value method. What are the sales, cost of goods sold, and ending inventory for 2010?
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