Kentucky Purchases and Sells Widgets If Kentucky Sold 7,500 Units of Widgets During 2015, How

question 40

Multiple Choice

Kentucky purchases and sells widgets. The following information summarizes Kentucky's operating activities for 2015: $$\begin{array} { | l | r | } \hline \text { Selling and Administrative Expenses } & \$ 4,500 \\\hline \text { Purchases } & 157,000 \\\hline \text { Sales Revenue } & 785,000 \\\hline \text { Merchandise Inventory, January 1, 2015 } & 38,250 \\\hline \text { Merchandise Inventory, December 31, 2015 } & 79,000 \\\hline\end{array}$$ If Kentucky sold 7,500 units of widgets during 2015, how much is the cost for one widget?

• A) $50.00
• B) $15.50
• C) $26.36
• D) $16.10

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Definitions:

Transfer Warranties

Guarantees provided by a seller regarding the legality of transferring ownership of goods.

Transferee

is an individual or entity that receives the transfer of property, rights, or interest from another.

Secondarily Liable

Liable for paying the amount designated on an instrument should the primarily liable party default.

Primarily Liable

The state of being the first or main party responsible for fulfilling a liability or obligation.