Ask Question
20 January, 08:36

At a lump-sum cost of $72000, Sunland Company recently purchased the following items for resale: Item No. of Items Purchased Resale Price Per Unit M 4600 $4.05 N 2300 12.60 O 6600 6.60 The appropriate cost per unit of inventory is: M N O $3.63 $11.28 $5.91 $3.20 $9.95 $5.21 $5.33 $5.33 $5.33 $4.05 $12.60 $6.60

+1
Answers (1)
  1. 20 January, 11:34
    0
    M = $3.20

    N = $9.95

    O = $5.21

    I believe it is the second option.

    Explanation:

    Item No. of Items Purchased Resale Price Per Unit

    M 4,600 $4.05

    N 2,300 $12.60

    O 6,600 $6.60

    total resale price:

    M = 4,600 x $4.05 = $18,630 N = 2,300 x $12.60 = $28,980 O = 6,600 x $6.60 = $43,560 total = $91,170

    markup % = ($91,170 - $72,000) / $72,000 = 26.625%

    purchase cost per unit:

    M = $4.05 / (1 + 26.625%) = $3.20 N = $12.60 / (1 + 26.625%) = $9.95 O = $6.60 / (1 + 26.625%) = $5.21
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “At a lump-sum cost of $72000, Sunland Company recently purchased the following items for resale: Item No. of Items Purchased Resale Price ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers