Problem 3 A flood recently destroyed many of the financial records of Yakal Company. The entity uses an average cost inventory valuation system. Yakal makes a physical count at the end of each month in order to determine monthly ending inventory value. By auditing the documents, the following data are gathered: Ending inventory at July 31 60,000 units Total cost of units available for sale in July 1,452,100 Cost of goods sold during July 1,164,100 Cost of beginning inventory, July 1 4.00 per unit Gross profit on sales for July 935,900 July purchases: Units Unit cost Total cost July 5 55,000 5.10 280,500 11 53,000 5.00 265,000 15 45,000 5.50 247,500 16 47.000 5.30 249,100 200.000 1.042.100Landmark Company purchased a tract of unimproved land for P26,350,000. The land was improved and subdivided into residential lots at a cost of P43500000 These lots were all of the same size ut owing to differences in location were offered for sale at different prices as follows: Group No. of Lofs Sales price per lot 1 20 3,000,000 2 10 2,500,000 3 10 2,000,000 Lots unsold at the end of the year are: Group 1 5 lots Group 2 4 lots Group 3 3 lots Elixir Company bought a 10-hectare land in Novaliches to be improved, subdivided into lots and eventually sold. Purchase price of the land was P5000000. Taxes and documentation expenses on the transfer of the property amounted to P80,000. The lots were classied as follows: Lot class Number of lots Selling price per lot Total clearing cost A 10 100,000 None B 20 80,000 100,000 C 40 70,000 300,000 D 50 60,000 800,000