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

question 116

Multiple Choice

Levy's Used Cars uses the specific identification method of costing inventory. During March, Levy purchased three cars for $5,000, $6,500, and $8,000, respectively. During March, the first two cars are sold for $7,500 each. What is Levy's gross profit for March?

• A) $2,000
• B) $3,500
• C) $500
• D) $7,000

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Definitions:

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