Minnetonka,Inc.is a merchandiser of stone ornaments.The company sold 15,600 units during the year.The company has provided the following information: $$\begin{array} { | l | r | }
\hline \text { Sales Revenue } & \$ 554,000 \
\hline \text { Purchases (excluding Freight In) } & 300,000 \
\hline \text { Selling and Administrative Expenses } & 66,000 \
\hline \text { Freight In } & 14,000 \
\hline \text { Beginning Merchandise Inventory } & 47,000 \
\hline \text { Ending Merchandise Inventory } & 55,500 \
\hline
\end{array}$$
What is the unit cost per item sold? (Round your answer to the nearest cent.)
A) $19.58
B) $16.57
C) $23.14
D) $20.13

Question

Minnetonka,Inc.is a merchandiser of stone ornaments.The company sold 15,600 units during the year.The company has provided the following information: $$\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 554,000 \
\hline \text { Purchases (excluding Freight In) } & 300,000 \
\hline \text { Selling and Administrative Expenses } & 66,000 \
\hline \text { Freight In } & 14,000 \
\hline \text { Beginning Merchandise Inventory } & 47,000 \
\hline \text { Ending Merchandise Inventory } & 55,500 \
\hline
\end{array}$$ 
What is the unit cost per item sold? (Round your answer to the nearest cent.)
A) $19.58
B) $16.57
C) $23.14
D) $20.13

Quizplus · Accepted Answer

Unit cost per item sold = (Beginning Merchandise Inventory + Purchases + Freight In - Ending Merchandise Inventory) / Units Sold= (47,000 + 300,000 + 14,000 - 55,500) / 15,600= 305,500 / 15,600= $19.58

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