Question

In fiscal 2020, Bridgeport Realty Corporation purchased unimproved land for $55,700. The land was improved and subdivided into building lots at an additional cost of $34,700. These building lots were all the same size but, because of differences in location, were offered for sale at different prices, as follows: Group No. of Lots Price per Lot 1 8 $3,630 2 17 4,570 3 24 2,720 Operating expenses that were allocated to this project totalled $19,100 for the year. At year end, there were also unsold lots remaining, as follows: Group 1 4 lots Group 2 7 lots Group 3 3 lots Determine the year-end inventory and net income of Bridgeport Realty Corporation. Ignore income taxes. (Round computations to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places. e.g. 5,275.) Year-end inventory $ Net income / (Loss) $

Answer 1

Calculation of Cost per Lot
Group	1	2	3	Total
No. of Lots (A)	8	17	24	49.00
Sales price per Lot ($) (B)	3,630.00	4,570.00	2,720.00	10,920.00
Total Sales Price ($) (AxB)	29,040.00	77,690.00	65,280.00	172,010.00
Sale Price %	16.88%	45.17%	37.95%	100.00%
Total Costs ($)	$90,400.00
Distribution of cost as per sales price	15,262.00	40,830.04	34,307.96	90,400.00
Cost Per Lot	1,907.75	2,401.77	1,429.50
Gross Profit Calculation
Group	1	2	3	Total
No. Of Lots Sold	4	10	21	35
Cost Per Lot (From above)	1,907.75	2,401.77	1,429.50
Cost Of Plots Sold (A)	7,631.00	24,017.67	30,019.46	61,668.14
Sale Price Per lot	3,630	4,570	2,720
Total Sale Value (B)	14,520.00	45,700.00	57,120.00	117,340.00
Gross Profit (B-A)	6,889.00	21,682.33	27,100.54	55,671.86

Total Gross Profit	55,672
(-) Operating Expenses	19,100
Net Profit	36,572

Total Cost = Cost of unimproved Land + Cost of improvization = 55,700 + 34,700 = $90,400

Distribution of cost as per sales price = ( Total Sale Price of that group/ Total Sale price all group) * Total Cost.

In the question I was not able to see tables etc clearly due to format, so there might have been a mathematical error maybe, if it says answer is wrong please comment with photo of question dont copy paste. If you copy paste, questions looks like as this to me

As you can see its hard to understand whats written so please comment if system says answer is wrong

Year End Inventory Value
Group	1	2	3
No. Of Lots (remaining)	4	7	3
Cost Per Lot	1,907.75	2,401.77	1,429.50
Total Inventory Value	7,631.00	16,812.37	4,288.49