If BetterBuy uses the specific identification method,its cost of goods sold will be:
A)$3,000
B)$2,950
C)$3,200
D)$3,033

Question

Quizplus · Accepted Answer

Based on the specific identification method, the cost of goods sold will be the actual cost of the specific items sold. In this case, BetterBuy sold two units of its inventory, one costing $2,900 and the other costing $3,000. Therefore, the cost of goods sold will be $2,900 + $3,000 = $5,900. Thus, option B is the correct answer.

If BetterBuy Uses the Specific Identification Method,its Cost of Goods