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:

ATP

Adenosine Triphosphate, a molecule that stores and transfers energy within cells, enabling metabolic processes.

Synthesized

Produced artificially by chemical or biological processes.

Anabolism

The metabolic pathways that construct molecules from smaller units, involving energy storage.

Nucleotide

The basic building block of nucleic acids like DNA and RNA, consisting of a sugar, a phosphate group, and a nitrogenous base.