Gene's Used Cars uses the specific identification method of costing inventory.During March, Gene purchased three cars for $5,000, $6,500, and $8,000, respectively.During March, two cars are sold for $7,500 each.Gene determines that at March 31, the $8,000 car is still on hand.What is Gene's cost of goods sold for March?
A)$8,000
B)$11,500
C)$14,500
D)$15,000

Question

Quizplus · Accepted Answer

Using the specific identification method, the cost of goods sold is equal to the cost of the cars that were sold. In this case, two cars were sold, one for $5,000 and one for $6,500, for a total cost of goods sold of $11,500. The $8,000 car is still on hand and is not included in the cost of goods sold. Therefore, the correct answer is B) $11,500.

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