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 comma 500 Purchases 159 comma 000 Sales Revenue 788 comma 000 Merchandise​ Inventory, January 1 2 comma 300 Merchandise​ Inventory, December 31 38 comma 900 If the company sold 7 comma 800 units of bracelets during the​ year, how much is the cost for one​ bracelet?

Answer 1

$15.69

Step-by-step explanation:

The computation of cost for one​ bracelet is shown below:-

Total cost = Beginning inventory + Purchases - Ending inventory

= $2,300 + $159,000 - $38,900

= $122,400

Now,

Cost for one​ bracelet = Total cost ÷ Units of Bracelets

= $122,400 ÷ $7,800

= $15.69

So, for computing the cost of one bracelet we simply divide total cost by units of bracelet.