The pricing of an inventory where the purchase invoice of each item in the ending inventory is identified and used to determine the cost assigned to the inventory is
A) Weighted-average inventory method
B) First-in, first-out method
C) Average costing method
D) Specific identification method
E) Retail method

Question

Quizplus · Accepted Answer

The specific identification method involves identifying the purchase invoice of each item in the ending inventory to determine its cost. This method is best used when the inventory consists of unique, high-priced items, such as cars or artwork.

The Pricing of an Inventory Where the Purchase Invoice of Each