Question

Crabapples, Inc. purchases and sells boxes of dried fruit. The following information summarizes its operating activities for the year: Selling Expenses $10,000 Merchandise Inventory on December 31 32,000 Merchandise Inventory on January 1 46,000 Purchases of merchandise 82,500 Rent for store 12,700 Sales commissions 7100 Sales revenue 168,000 What is the cost per box of dry fruits if Crabapples sold 4000 boxes of dry fruit during the year? (Round your answer to the nearest cent.) A) $24.13 B) $8.00 C) $32.13 D) $42.00

Answer 1

Answer:

A) $24.13

Explanation:

Calculation for What is the cost per box of dry fruits

First step is to calculate the Cost of Goods Sold

Cost of Goods Sold= 46,000 + 82,500 - 32,000

Cost of Goods Sold= $ 96,500

Now let calculate the Cost per box

Cost per box = $96,500 / 4,000 boxes

Cost per box= $24.13

Therefore the cost per box of dry fruits will be $24.13