Problem
Kentucky, Inc. purchases and sells widgets. The following information summarizes the company's operating activities for the year:
Selling and Administrative Expenses $5,400
Purchases 156,000
Sales Revenue 783,000
Merchandise? Inventory, January 1 2,500
Merchandise? Inventory, December 31 38,200
If the company sold 7,100 units of widgets during the year, how much is the cost for one widget?