Dakota,Inc.is a merchandiser of medallions.The company sold 15,100 units during the year.The company has provided the following information: $\begin{array} { | l | r | }
\hline \text { Sales Revenue } & \$ 558,000 \
\hline \text { Purchases (excluding Freight In) } & 280,000 \
\hline \text { Selling and Administrative Expenses } & 66,000 \
\hline \text { Freight In } & 13,000 \
\hline \text { Beginning Merchandise Inventory } & 52,000 \
\hline \text { Ending Merchandise Inventory } & 54,900 \
\hline
\end{array}$ What is the unit cost per item sold? (Round your answer to the nearest cent.)

Question

Dakota,Inc.is a merchandiser of medallions.The company sold 15,100 units during the year.The company has provided the following information: $\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 558,000 \
\hline \text { Purchases (excluding Freight In) } & 280,000 \
\hline \text { Selling and Administrative Expenses } & 66,000 \
\hline \text { Freight In } & 13,000 \
\hline \text { Beginning Merchandise Inventory } & 52,000 \
\hline \text { Ending Merchandise Inventory } & 54,900 \
\hline
\end{array}$ What is the unit cost per item sold? (Round your answer to the nearest cent.)

Quizplus · Accepted Answer

The unit cost per item sold is calculated by finding the cost of goods sold (COGS) and dividing it by the number of units sold. COGS = Beginning Inventory + Purchases + Freight In - Ending Inventory = $52,000 + $280,000 + $13,000 - $54,900 = $290,100. Unit cost = COGS / Units sold = $290,100 / 15,100 = $19.21.

Dakota,Inc What Is the Unit Cost Per Item Sold? (Round Your