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 includes the cost of the Honda Civic ($6,200) and the Chevy Malibu ($7,300), totaling $13,500. The Ford Pinto, which costs $8,400, is still on hand and not included in the cost of goods sold.

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