Anderson's Used Cars uses the specific identification formula of costing inventory.During March, Anderson purchased three cars: a Honda Civic for $6,200, a Chevy Malibu for $7,300, and a Ford Pinto $8,400, respectively.During March, two cars are sold for $8,600 each.Anderson determines that at March 31, the Ford Pinto is still on hand.What is Anderson's cost of goods sold for March?
A)$8,400
B)$13,500
C)$15,700
D)$17,200

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) for March is $13,500, calculated by adding the cost of the Honda Civic ($6,200) and the Chevy Malibu ($7,300), which are the two cars sold. The Ford Pinto, costing $8,400, remains in inventory and is not included in the COGS.

Anderson's Used Cars Uses the Specific Identification Formula of Costing