Minnetonka,Inc.is a merchandiser of stone ornaments.The company sold 15,100 units during the year.The company has provided the following information: $$\begin{array} { | l | r | }
\hline \text { Sales Revenue } & \$ 558,000 \
\hline \text { Purchases (excluding Freight In) } & 280,000 \
\hline \text { Selling and Administrative Expenses } & 280,000 \
\hline \text { Freight In } & 66,000 \
\hline \text { Beginning Merchandise Inventory } & 13,000 \
\hline \text { Ending Merchandise Inventory } & 52,000 \
\hline
\end{array}$$ 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

Minnetonka,Inc.is a merchandiser of stone ornaments.The company sold 15,100 units during the year.The company has provided the following information: $$\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 558,000 \
\hline \text { Purchases (excluding Freight In) } & 280,000 \
\hline \text { Selling and Administrative Expenses } & 280,000 \
\hline \text { Freight In } & 66,000 \
\hline \text { Beginning Merchandise Inventory } & 13,000 \
\hline \text { Ending Merchandise Inventory } & 52,000 \
\hline
\end{array}$$ 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 as follows:Unit cost per item sold = (Beginning Merchandise Inventory + Purchases + Freight In - Ending Merchandise Inventory) / Units Sold= (13,000 + 280,000 + 66,000 - 52,000) / 15,100= $19.21

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