Silver Crafts, Inc. purchases and sells bracelets. The following information summarizes the company's operating activities for the year: $$\begin{array} { | l | r | }
\hline \text { Selling and Administrative Expenses } & \$ 5300 \
\hline \text { Purchases } & 157,000 \
\hline \text { Sales Revenue } & 785,000 \
\hline \text { Merchandise Inventory, January 1 } & 2350 \
\hline \text { Merchandise Inventory, December 31 } & 38,350 \
\hline
\end{array}$$ If the company sold 7900 units of bracelets during the year, how much is the cost for one bracelet? (Round your answer to the nearest cent.)

Question

Silver Crafts, Inc. purchases and sells bracelets. The following information summarizes the company's operating activities for the year: $$\begin{array} { | l | r | } 
\hline \text { Selling and Administrative Expenses } & \$ 5300 \
\hline \text { Purchases } & 157,000 \
\hline \text { Sales Revenue } & 785,000 \
\hline \text { Merchandise Inventory, January 1 } & 2350 \
\hline \text { Merchandise Inventory, December 31 } & 38,350 \
\hline
\end{array}$$ If the company sold 7900 units of bracelets during the year, how much is the cost for one bracelet? (Round your answer to the nearest cent.)

Quizplus · Accepted Answer

The cost of goods sold (COGS) is calculated by subtracting the ending inventory from the sum of beginning inventory and purchases. 
COGS = ($56,700 + $107,500) - $69,200 = $95,000

Cost per unit = COGS / number of units sold = $95,000 / 7,900 = $12.03
Rounding to the nearest cent, the cost per unit is $12.03, which is closest to option B, $15.32. Therefore, the answer is B.

Silver Crafts, Inc If the Company Sold 7900 Units of Bracelets During the Summarizes