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

question 11

Multiple Choice

Harpo's Used Cars uses the specific identification method of costing inventory. During March Harpo purchased three cars for $12000 $14400 and $19200 respectively. During March two cars are sold for a total of $36400. Harpo determines that at March 31 the $14400 car is still on hand. What is Harpo's gross profit for March?

• A) $2800.
• B) $5200.
• C) $4200.
• D) $10000.

---

Definitions:

Managerial Accounting

Managerial accounting involves the provision of financial and non-financial information to an organization's management team to assist in decision-making and strategy planning.

Setting Goals

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives that guide individuals or organizations.

Managerial Accounting Reports

Internal financial reports that provide managers with the necessary information to make informed business decisions, typically focused on future profitability and efficiency.

Subunits

Subunits refer to smaller, separately identifiable parts of a larger organization, which can be departments, divisions, or subsidiaries, each responsible for distinct functions or regions.