Dittner Inc. opened for business on July 1, 2013 selling unique jewellery purchased from local artisans. During the month the company made the following purchases:
On July 31, only inventory items 006, 008, and 010 remained in inventory. Requirements:
(a) Determine the cost of goods sold for Harris Inc. for the month of July using the specific identification cost determination method.
(b) Discuss whether or not specific identification is an appropriate cost determination method for this company.

Question

Dittner Inc. opened for business on July 1, 2013 selling unique jewellery purchased from local artisans. During the month the company made the following purchases:
  On July 31, only inventory items 006, 008, and 010 remained in inventory. Requirements:
(a) Determine the cost of goods sold for Harris Inc. for the month of July using the specific identification cost determination method.
(b) Discuss whether or not specific identification is an appropriate cost determination method for this company.

Quizplus · Accepted Answer

The Answer of Dittner Inc. opened for business on July 1, 2013 selling unique jewellery purchased from local artisans. During the month the company made the following purchases:
  On July 31, only inventory items 006, 008, and 010 remained in inventory. Requirements:
(a) Determine the cost of goods sold for Harris Inc. for the month of July using the specific identification cost determination method.
(b) Discuss whether or not specific identification is an appropriate cost determination method for this company.