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The conjugation is fine. The general steps are. Take the infinitve and throw away the ending (usually -en sometimes -n):
kosten --> kost
Now add the ending corresponding to your subject which would be -t in this case (3rd person singular), but because the stem already ends with a "t" you use an additional "e" in between. Otherwise one couldn't pronounce the second "t":
kost --> Es kostet
If you look at kosen:
kosen --> kos --> es kost
For kosen there is a special case for the 2nd person singular. Usually you would add an -st to the stem. This would generate a double-s (kosst) which would make the "o" sound short and thus sound different from all other conjugations. Therefore the extra "s" is left out and only a "t" is added leaving the 2nd and 3rd person singular the same for this verb.
These are general rules if the stem ends with a "-t" and you would have to add another one you add "-et" instead. If the stem ends with an "-s" and you would need to add another one, you leave the "s" out
Different languages use different idioms to express that something is very cheap -- you have to translate the entire idiom rather than focussing on the apples and eggs.
A bit like "raining cats and dogs" to say that it's raining very heavily, which German does not express with "cats" and "dogs"; or expressions such as "three sheets to the wind" for "drunk" which you can't translate literally, either.
Translation is not word for word. The goal is to produce the same meaning in the mind of the listener as was in the mind of the speaker.
In German, people say es kostet nur einen Apfel und ein Ei to say that something is very cheap.
But if you said, "it only costs an apple and an egg" to an English speaker, they will not understand that it was cheap. They will think that you paid one apple and one egg. So your translation was not successful.
To translate the meaning (and not just the words), you have to find a way to make the English speaker understand that the item was cheap. One such way is to say that "it just cost peanuts".
Translate phrases or sentences -- not individual words.