Dillon Young owns Dillon's Pets, a small retail shop selling pet supplies. On December 31, 2018, the accounting records for Dillon's Pets showed the following:
Merchandise Inventory on December 31, 2018 .......................... $ 10,500
Merchandise Inventory on January 1, 2018 ................................. 16,000
Net Sales Revenue ............................................................. 56,000
Utilities Expense for the shop ................................................. 3,200
Rent for the shop ................................................................ 4,100
Sales Commissions ............................................................. 2,750
Purchases of Merchandise Inventory ....................................... 25,000
Requirements
1. Prepare an income statement for Dillon's Pets for the year ended December 31, 2018.
2. Dillon's Pets sold 5,550 units. Determine the unit cost of the merchandise sold, rounded to the nearest cent?