Minnetonka, Inc is a merchandiser of stone ornaments

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 280,000
Freight In 66,000
Beginning Merchandise Inventory 13,000
Ending Merchandise Inventory 52,000

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

A .A)
Purchases (excluding Freight In) 280,000
Freight In 13,000
Beginning Merchandise Inventory 52,000
Ending Merchandise Inventory (54,900 )
Cost of Goods Sold $290,100

Cost per unit sold = $290,100 / 15,100 units = $19.21

Business

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