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

question 64

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 $12,000 each.Ted determines that at March 31, the $13,000 car is still on hand.What is Ted's gross profit for March?

• A)$7,000.
• B)$6,000.
• C)$1,000.
• D)$11,000.

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