Ted's Used Cars Uses the Specific Identification Method of Costing

question 143

Multiple Choice

Ted's Used Cars uses the specific identification method of costing inventory. During March, Ted purchased three cars for $8,000, $10,000, and $13,000, respectively. During March, two cars are sold for $11,000 each. Ted determines that at March 31, the $13,000 car is still on hand. What is Ted's gross profit for March?

• A) $3,000.
• B) $4,000.
• C) $1,000.
• D) $9,000.

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Definitions:

Liberating Influence

A force or factor that frees individuals or groups from restrictions, enabling greater autonomy, expression, or action.

Constraining Influence

Factors or forces that limit or restrict actions, behaviors, or decisions.

Globalization

The method through which companies or different entities gain international impact or begin to function globally, resulting in a greater linkage among global economies, cultures, and communities.

Proponents

Individuals or groups who support a particular idea, policy, or project.