Ken's Hotel Heating and Ventilation uses the specific identification method of costing inventory.During March, Ken purchased three air conditioning units for $5,000, $6,000, and $8,000, respectively.During March, two units are sold for $8,500 each.Ken determines that at March 31, the $8,000 unit is still on hand.What is Ken's gross profit for March?

Question

Quizplus · Accepted Answer

Ken sold two units for $8,500 each, totaling $17,000. The cost of the sold units is $5,000 and $6,000, totaling $11,000. Gross profit is $17,000 - $11,000 = $6,000.

Ken's Hotel Heating and Ventilation Uses the Specific Identification Method