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.)
A) $19.21
B) $15.77
C) $22.85
D) $19.40

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.)
A) $19.21
B) $15.77
C) $22.85
D) $19.40

Quizplus · Accepted Answer

The unit cost per item sold is calculated by dividing the total cost of goods sold by the number of units sold. The total cost of goods sold is calculated by adding the beginning merchandise inventory, purchases, and freight in, and then subtracting the ending merchandise inventory. In this case, the total cost of goods sold is $280,000 + $13,000 + $52,000 - $54,900 = $280,100. The unit cost per item sold is then calculated by dividing $280,100 by 15,100, which equals $19.21.

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