Five Seasons is a merchandiser of packed foods. The company provides the following information for the year 2015: How much was the unit cost per unit of product sold?

Question

Five Seasons is a merchandiser of packed foods. The company provides the following information for the year 2015:  How much was the unit cost per unit of product sold?

Quizplus · Accepted Answer

The information provided does not directly give the unit cost per unit of product sold. To calculate this, we need to divide the total cost of goods sold by the total units sold. Using the information given, we can calculate the unit cost per unit of product sold as follows:

Total cost of goods sold = Beginning inventory + Purchases - Ending inventory
Total cost of goods sold = $5,320 + $49,480 - $7,180 = $47,620

Total units sold = Beginning inventory + Units produced - Ending inventory
Total units sold = 4,280 + 39,600 - 6,860 = 37,020

Unit cost per unit of product sold = Total cost of goods sold / Total units sold
Unit cost per unit of product sold = $47,620 / 37,020
Unit cost per unit of product sold = $1.28

Therefore, the unit cost per unit of product sold is $1.28, which is closest to option C ($2.33).

Five Seasons Is a Merchandiser of Packed Foods