2a)The inventory valuation method that identifies each item in ending inventory
ID: 2414970 • Letter: 2
Question
2a)The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the:
Weighted average inventory method.
First-in, first-out method.
Last-in, first-out method.
Specific identification method.
Retail inventory method.
2b)
The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the:
Weighted average inventory method.
First-in, first-out method.
Last-in, first-out method.
Specific identification method.
Retail inventory method.
Explanation / Answer
2a) Inventory valuation can be done in any of the methods like Weighted average inventory method, First-in first-out method, Last-in first-out method, Specific identification method, and Retail inventory method. But in specific identification method identifies each item in ending inventory with a specific purchase and invoice. Therefore, it is specific identification method which identifies the each item in ending inventory.
2b)
Inventory valuation can be done in any of the methods like Weighted average inventory method, First-in first-out method, Last-in first-out method, Specific identification method, and Retail inventory method. But in specific identification method identifies each item in ending inventory with a specific purchase and invoice. Therefore, it is specific identification method which identifies the each item in ending inventory.