Question

Which of the following inventory valuation methods should be used for unique items?

first-in, first-out

last-in, first-out

weighted-average

specific identification

Merchandise Inventory and Cost of Goods Sold appear ________.

on the balance sheet and statement of owner's equity, respectively

on the statement of owner's equity and income statement, respectively

on the balance sheet and income statement, respectively

on the income statement and statement of cash flows, respectively

Answer 1

Answer:-Specific identification inventory valuation methods should be used for unique items.

Explanation:- Specific identification method can be applied in situations where different purchases can be physically separated. Under this method, each item sold and each item remaining in the inventory is identified. The cost of specific items that are sold during a period is included in the cost of goods sold for that period and the cost of specific items remaining on hand at the end of a period is included in the ending inventory of that period.

Merchandise Inventory and Cost of Goods Sold appear on the balance sheet & income statement, respectively.

Explanation:- This information of the merchandise inventory appears on the balance sheet of the accounting period for which purchases are being measured. Cost of goods sold appears on the income statement of the accounting period for which purchases are being measured.