Question

charlie roberts owns charlies pets, a small retail shop selling pet supplies, on december 31,2018 the accounting records of charlies pets showed the following: merchandise inventory on 12/31/2018 10300, merchandise inventory on 1/1/2018 15200, net sales revenue 51000, utilities expenses for the shop 4000, rent for the shop 4200, sales commission 2550, purchases of merchandise inventory 22000. prepare an income statement for the year ended 12/31/2018, 3800 units were sold. what was the cost per unit also?

Answer 1

Income statement for the year ended	Amount	Amount
REVENUE
Net Sales revenue	51000
Total Revenue		51000
Less : Cost of goods sold
Opening inventory as on 1/1/2018	15200
(+) Purchase of inventory	22000
(-) Closing inventory as on 12/31/2018	(10300)
Cost of Goods Sold		26900
Gross Profit		24100
Less : Expenses
Utilities expenses for the shop	4000
Rent for the shop	4200
Sales commission	2550
Total Expenses		10750
Net Revenue		13350

Calculation of Cost per Unit :

Cost of goods sold+Total expenses=37650

Cost per unit=36750/3800=9.907