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The Average Cost of AD Computer Modems on 30 March

question 53

Multiple Choice

The average cost of AD computer modems on 30 March, as per the stock card, is $21.06. If 200 modems are sold at $24.00 each, what is the cost of the modems charged to the income statement, assuming the weighted average method of costing is used?


Definitions:

Break-even Price

The price level at which the revenues for a product or service equal the costs, resulting in neither profit nor loss.

Markdown

A reduction from the original or previous retail price of a product.

Rate

A measure, quantity, or frequency, typically one measured against another quantity or measure.

Marked Up

Refers to the percentage increase in the price of a good or service over its original cost to achieve a profit.

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