NET Computers Sold 20 Modems for $60 on 30 April

question 52

Multiple Choice

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

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Definitions:

Total Expenditure

The total amount spent on goods and services over a specific period.

Circular-Flow Diagram

A visual model of the economy that shows how dollars flow through markets among households and firms.

Supply and Demand

The fundamental economic model describing how prices fluctuate based on the interplay between the quantity of a good available and the desire for that good.

Macroeconomic Analysis

The study of the behavior, structure, and decision-making of an economy as a whole, including topics like inflation, unemployment, and economic growth.