Question

ABC Computer Company had the following information from the Income Statement. The company sold 200 computers (all the same model): Sales $160,000 Cost of Goods Sold 80,000 Total Expenses 20,000 What is the unit cost per item (computer)?

Answer 1

The unit cost per item (computer) is $400 per item

Step-by-step explanation:

For computing the unit cost per computer item, the following formula should be used which is shown below:

= Cost of sold goods ÷ number of units sold

= $80,000 ÷ 200

= $400 per unit

We do not consider the sales revenue because we have to calculate the unit cost if the question said about selling price than we use the sales revenue. Therefore, this part is irrelevant.

Hence, the unit cost per item (computer) is $400 per item