Cam Smith owns Cam’s Pets, a small retail shop selling pet supplies. On December 31,
2016, the accounting records of Cam’s Pets showed the following:
Inventory on December 31, 2016......$ 10,400
Inventory on January 1, 2016......... 15,100
Sales Revenue............... 58,000
Utilities Expense for the shop......... 3,700
Rent for the shop.............. 4,900
Sales Commissions............ 2,950
Purchases of Merchandise Inventory..... 29,000
Requirements
1. Prepare an income statement for Cam’s Pets for the year ended December 31, 2016.
2. Cam’s Pets sold 5,450 units. Determine the unit cost of the merchandise sold, rounded to the nearest cent.