Question

Dakota, Inc. is a merchandiser of medallions. The company sold​ 15,100 units during the year. The company has provided the following​ information: Sales Revenue ​$558,000 Purchases​ (excluding Freight​ In) ​280,000 Selling and Administrative Expenses ​66,000 Freight In ​13,000 Beginning Merchandise Inventory ​52,000 Ending Merchandise Inventory ​54,900 What is the unit cost per item​ sold? (Round your answer to the nearest​ cent.)

Answer 1

Answer:

$19.21

Explanation:

The computation of the unit cost per item is as follows:

Beginning merchandise inventory $52,000

Add: Purchases + freight in   $293,000  ($280,000 + $13,000)

Less: Ending merchandise inventory -$54,900

Cost of goods sold     $290,100

Now the cost of goods sold per unit is

= $277,100 ÷ 15,100 units

=  $19.21