Bundled Inventory Purchases When a group of varying inventory items is purchased for a lump sum price, the relative sales value method is often used to apportion the total cost to individual items. It does so on the basis of the selling price of each item. Example: E8-7 Phil Collins Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and subdivided into building lots at an additional cost of $34,460. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. What is that lots