Crystal Ltd is a retailer of stone ornaments.The company sold 15,200 units in 2017.The company has provided the following information:
$$\begin{array} { | l | l | }
\hline \text { Sales revenue } & \$ 554,000 \
\hline \text { Purchases (excluding freight in) } & 290,000 \
\hline \text { Selling and administrative expenses } & 68,000 \
\hline \text { Freight in } & 14,000 \
\hline \text { Beginning inventory } & 49,000 \
\hline \text { Ending inventory } & 53,400 \
\hline
\end{array}$$
What is the cost per unit sold?

Question

Crystal Ltd is a retailer of stone ornaments.The company sold 15,200 units in 2017.The company has provided the following information:
$$\begin{array} { | l | l | } 
\hline \text { Sales revenue } & \$ 554,000 \
\hline \text { Purchases (excluding freight in) } & 290,000 \
\hline \text { Selling and administrative expenses } & 68,000 \
\hline \text { Freight in } & 14,000 \
\hline \text { Beginning inventory } & 49,000 \
\hline \text { Ending inventory } & 53,400 \
\hline
\end{array}$$
What is the cost per unit sold?

Quizplus · Accepted Answer

To find the cost per unit sold, first calculate the cost of goods sold (COGS):  COGS = Beginning Inventory + Purchases + Freight In - Ending Inventory  COGS = $49,000 + $290,000 + $14,000 - $53,400 = $299,600  Then, divide the COGS by the number of units sold:  Cost per unit = $299,600 / 15,200 units = $19.71

Crystal Ltd Is a Retailer of Stone Ornaments What Is the Cost Per Unit Sold? A) $23

Crystal Ltd Is a Retailer of Stone Ornaments What Is the Cost Per Unit Sold?
A) $23