3. Moza Co. purchased land as a factory site for $1,350,000. Moza paid $120,000 to tear down
two buildings on the land. Salvage was sold for $8,100. Legal fees of $5,220 were paid for title
investigation and making the purchase. Architect's fees were $46,800. Title insurance cost
$3,600, and liability insurance during construction cost $3,950. Excavation cost $15,670. The
contractor was paid $4,200,000. An assessment made by the city for pavement was $9,700.
Interest costs during construction were $255,000. The cost of the building that should be recorded
by Moza Co. is
4.
Ryan Co. uses the retail inventory method. The following information is available for the
current year.
Beginning inventory
Purchases
Frieght-in
Employee discounts
Net markups
Net markdowns
Sales revenue
Cos
$ 312,000
1,180,000
25,000
Retail
$488,000
1,660,000
8,000
65,000
80,000
1,560,000
The approximate cost of the ending inventory by the conventional retail method is