Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information: $$\begin{array} { |l | r| }
\hline \text { Sales Revenue } & \$ 557,000 \
\hline \text { Purchases (excluding freight in) } & 300,000 \
\hline \text { Selling and Administrative Expenses } & 69,000 \
\hline \text { Freight In } & 15,000 \
\hline \text { Beginning Merchandise Inventory } & 45,000 \
\hline \text { Ending Merchandise Inventory } & 55,700 \
\hline
\end{array}$$ What is the cost per unit sold?
A) $20.29
B) $15.00
C) $23.88
D) $12.25

Question

Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information: $$\begin{array} { |l | r| } 
\hline \text { Sales Revenue } & \$ 557,000 \
\hline \text { Purchases (excluding freight in) } & 300,000 \
\hline \text { Selling and Administrative Expenses } & 69,000 \
\hline \text { Freight In } & 15,000 \
\hline \text { Beginning Merchandise Inventory } & 45,000 \
\hline \text { Ending Merchandise Inventory } & 55,700 \
\hline
\end{array}$$ What is the cost per unit sold?
A) $20.29
B) $15.00
C) $23.88
D) $12.25

Quizplus · Accepted Answer

Cost of goods sold = Beginning merchandise inventory + Purchases - Ending merchandise inventory= 45,000 + 300,000 - 55,700= 290,300Cost per unit sold = Cost of goods sold / Units sold= 290,300 / 15,000= $20.29

Crystal Inc What Is the Cost Per Unit Sold? A) $20

Crystal Inc What Is the Cost Per Unit Sold?
A) $20