Question

Crabapples, Inc. purchases and sells boxes of dried fruit. The following information summarizes its operating activities for the year: Selling Expenses Merchandise Inventory on December 31 Merchandise Inventory on January 1 Purchases of merchandise Rent for store Sales commissions Sales revenue $10,000 32,000 46,000 82,500 12,700 7,100 168,000 What is the cost per box of dry fruits if Crabapples sold 4.000 boxes of dry fruit during the vear? (Round vour answer to the nearest cent.) O A. $42.00 O B. $8.00 OC. $24.13 OD. $32.13

Answer 1

Answer: C. $24.13

Explanation

Cost of Goods Sold = Merchandise Inventory on January 1+Purchases of Merchandise- Merchandise Inventory on December 31

= 46,000 + 82,500 - 32,000

= $ 96,500

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

= $24.13