In 2014, Charlie Snyder opened Charlie’s Pets, a small retail shop selling pet supplies. On December 31, 2014, the accounting records of Charlie’s Pets showed the following:

Inventory on December 31, 2014 ..........$ 10,200

Inventory on January 1, 2014 .......... 15,100

Sales Revenue ................ 57,000

Utilities Expense for the shop .......... 3,900

Rent for the shop ............... 4,100

Sales Commissions .............. 2,150

Purchases of Merchandise Inventory ....... 27,000

Requirements

1. Prepare an income statement for Charlie’s Pets for the year ended December 31, 2014.

2. Charlie’s Pets sold 4,250 units. Determine the unit cost of the merchandise sold.