Clyde Synder owns Clyde’s Pets, a small retail shop selling pet supplies. On December 31, 2016, the accounting records for Clyde’s Pets showed the following:
Inventory on December 31, 2016........$ 10,250
Inventory on January 1, 2016........... 15,400
Sales Revenue................. 58,000
Utilities Expense for the shop........... 3,100
Rent for the shop................ 4,700
Sales Commissions.............. 2,750
Purchases of Merchandise Inventory....... 29,000
Requirements
1. Prepare an income statement for Clyde’s Pets for the year ended December 31, 2016.
2. Clyde’s Pets sold 3,200 units. Determine the unit cost of the merchandise sold, rounded to the nearest cent.