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.

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Definitions:

Rate Of Interest

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.

Monthly Payments

Regular amounts paid each month, often in the context of loans, mortgages, or other long-term financial commitments, to reduce a debt or pay for a service.

Terms Of The Loan

The specific conditions agreed upon by the lender and borrower, defining the loan amount, interest rate, repayment schedule, and other obligations.

Future Value

A future date's asset or cash value that matches a predetermined sum's worth in the present.