Question

Silver​ Crafts, Inc. purchases and sells bracelets. The following information summarizes the​ company's operating activities for the​ year: Selling and Administrative Expenses ​$5,300 Purchases ​157,000 Sales Revenue ​785,000 Merchandise​ Inventory, January 1 ​2,350 Merchandise​ Inventory, December 31 ​38,350 If the company sold​ 7,900 units of bracelets during the​ year, how much is the cost for one​ bracelet? (Round your answer to the nearest​ cent.)

Answer 1

Answer:

$15.32

Explanation:

The cost of one bracelet is the cost of goods sold (COGS) divided by the number of bracelets.

The formula for (cogs) is

beginning inventory (January 1)........................................2,350

(+) inventory cost during the year (purchases)...........157,000

(-) Ending inventory (December 31).................................38,350

______________________________________________

COST OF GOODS SOLD (COGS).........................121,000

Number of bracelets...........................................................7,900 units

One bracelet costs 121,000 divided by 7,900. That equals to $15.32