NET Computers sold 20 modems for $60 on 30 April. At that date, the stock card for the modems sold had a total of 50 modems on hand at an average cost of $45.50 each. What is the cost of the modems recognised in the income statement? Assume the weighted average method of costing is used.
A) $910
B) $1 200
C) $2 275
D) $3 000

Question

Quizplus · Accepted Answer

The cost of the modems recognized in the income statement is calculated using the weighted average cost method. With an average cost of $45.50 per modem and 20 modems sold, the cost is 20 modems * $45.50/modem = $910.

NET Computers Sold 20 Modems for $60 on 30 April