Glamorous Gold Inc. opened for business on April 1, 2018 selling unique jewellery, which it purchases from local artisans. During April, the company made the following purchases: On April 30, only inventory items 006, 008, and 010 remained in inventory.Instructions
a. Calculate the cost of goods sold for April using the specific identification cost formula.
b. Discuss whether or not specific identification is an appropriate cost formula for this company.

Question

Glamorous Gold Inc. opened for business on April 1, 2018 selling unique jewellery, which it purchases from local artisans. During April, the company made the following purchases:  On April 30, only inventory items 006, 008, and 010 remained in inventory.Instructions 
a. Calculate the cost of goods sold for April using the specific identification cost formula.
b. Discuss whether or not specific identification is an appropriate cost formula for this company.

Quizplus · Accepted Answer

The Answer of Glamorous Gold Inc. opened for business on April 1, 2018 selling unique jewellery, which it purchases from local artisans. During April, the company made the following purchases:  On April 30, only inventory items 006, 008, and 010 remained in inventory.Instructions 
a. Calculate the cost of goods sold for April using the specific identification cost formula.
b. Discuss whether or not specific identification is an appropriate cost formula for this company.