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

question 43

Multiple Choice

Gene's Used Cars uses the specific identification method of costing inventory.During March, Gene purchased three cars for $5,000, $6,500, and $8,000, respectively.During March, two cars are sold for $7,500 each.Gene determines that at March 31, the $8,000 car is still on hand.What is Gene's cost of goods sold for March?

• A)$8,000
• B)$11,500
• C)$14,500
• D)$15,000

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Definitions:

Inflation

An overall escalation in price levels and reduction in money's buying power.

Unemployment

The condition of being jobless despite an active search for employment.

Money Supply Growth

The increase in the total amount of monetary assets available in an economy at a specific time.

Unemployment Rate

The proportion of the workforce that is unemployed and actively seeking work.