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.

Question

Business

Aden

25 April, 23:04

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.

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Answers (1)

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Steven Davies · Answer 1

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