Question

Indrisano's Used Cars uses the specific identification method of costing inventory. During March, Indrisano purchased three cars for $12,000, $14,400, and $19,200, respectively. During March, two cars are sold for a total of $34,600. Indrisano determines that at March 31, the $14,400 car is still on hand. What is Indrisano's gross profit for March? $1,000. $3,400. $4,200. $8,200.

Answer 1

Answer:

The correct answer is B: $3,400

Explanation:

Giving the following information:

During March, Indrisano purchased three cars for $12,000, $14,400, and $19,200, respectively. During March, two cars are sold for a total of $34,600. Indrisano determines that on March 31, the $14,400 car is still on hand.

Sales= 34,600

Cost of goods sold= 12,000 + 19,200= 31,200

Gross profit= $3,400