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:

Celsius

A scale and unit of measurement for temperature where 0 degrees is the freezing point and 100 degrees is the boiling point of water under standard atmospheric conditions.

Body Temperature

The measure of the body's ability to generate and get rid of heat, essential for the proper function of enzymes and bodily processes.

Boiling

The rapid vaporization of a liquid when it is heated to its boiling point, the temperature at which it changes phase from liquid to gas.

Fahrenheit

A scale for measuring temperature where 32°F is the point at which water freezes and 212°F is the point at which it boils under normal atmospheric pressure.