The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the:
A) Weighted average inventory method.
B) First-in, first-out method.
C) Last-in, first-out method.
D) Specific identification method.
E) Retail inventory method.

Question

Quizplus · Accepted Answer

The specific identification method is the only method listed that identifies each item in ending inventory with a specific purchase and invoice. This method is typically used for high-value items with unique identification numbers, such as automobiles or jewelry.

The Inventory Valuation Method That Identifies Each Item in Ending