Specific identification method: Under this inventory method, each unit sold or on hand is matched with its actual cost by referring the invoice that represents its actual purchase price. This method is followed by the companies who sells unique and expensive products that has low sales volume. To describe: The key elements of Company H in regard to the specific identification costing method.

Question

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Answer 1

Question

Chapter 8, Problem 8.3BYP

1.a.

To determine

Specific identification method:

Under this inventory method, each unit sold or on hand is matched with its actual cost by referring the invoice that represents its actual purchase price. This method is followed by the companies who sells unique and expensive products that has low sales volume.

To describe: The key elements of Company H in regard to the specific identification costing method.

1.b.

To determine

To explain: As to why this method is appropriate for Company H.

2.a.

To determine

To state: The general criteria that Company H should use to determine inventory carrying amounts at December 31, 2016.

2.b.

To determine

To give: Four examples of costs included in these inventory carrying amounts.

3.

To determine

To state: The costs that should be reported in Company H’s 2016 income statement.

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Answer 2

Question

Chapter 8, Problem 8.3BYP

1.a.

To determine

Specific identification method:

Under this inventory method, each unit sold or on hand is matched with its actual cost by referring the invoice that represents its actual purchase price. This method is followed by the companies who sells unique and expensive products that has low sales volume.

To describe: The key elements of Company H in regard to the specific identification costing method.

1.b.

To determine

To explain: As to why this method is appropriate for Company H.

2.a.

To determine

To state: The general criteria that Company H should use to determine inventory carrying amounts at December 31, 2016.

2.b.

To determine

To give: Four examples of costs included in these inventory carrying amounts.

3.

To determine

To state: The costs that should be reported in Company H’s 2016 income statement.

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Answer 3

Question

Chapter 8, Problem 8.3BYP

1.a.

To determine

Specific identification method:

Under this inventory method, each unit sold or on hand is matched with its actual cost by referring the invoice that represents its actual purchase price. This method is followed by the companies who sells unique and expensive products that has low sales volume.

To describe: The key elements of Company H in regard to the specific identification costing method.

1.b.

To determine

To explain: As to why this method is appropriate for Company H.

2.a.

To determine

To state: The general criteria that Company H should use to determine inventory carrying amounts at December 31, 2016.

2.b.

To determine

To give: Four examples of costs included in these inventory carrying amounts.

3.

To determine

To state: The costs that should be reported in Company H’s 2016 income statement.

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Answer 4

Question

Chapter 8, Problem 8.3BYP

1.a.

To determine

Specific identification method:

Under this inventory method, each unit sold or on hand is matched with its actual cost by referring the invoice that represents its actual purchase price. This method is followed by the companies who sells unique and expensive products that has low sales volume.

To describe: The key elements of Company H in regard to the specific identification costing method.

1.b.

To determine

To explain: As to why this method is appropriate for Company H.

2.a.

To determine

To state: The general criteria that Company H should use to determine inventory carrying amounts at December 31, 2016.

2.b.

To determine

To give: Four examples of costs included in these inventory carrying amounts.

3.

To determine

To state: The costs that should be reported in Company H’s 2016 income statement.

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Answer 5

Chapter 8, Problem 8.3BYP

1.a.

To determine

Specific identification method:

Under this inventory method, each unit sold or on hand is matched with its actual cost by referring the invoice that represents its actual purchase price. This method is followed by the companies who sells unique and expensive products that has low sales volume.

To describe: The key elements of Company H in regard to the specific identification costing method.

1.b.

To determine

To explain: As to why this method is appropriate for Company H.

2.a.

To determine

To state: The general criteria that Company H should use to determine inventory carrying amounts at December 31, 2016.

2.b.

To determine

To give: Four examples of costs included in these inventory carrying amounts.

3.

To determine

To state: The costs that should be reported in Company H’s 2016 income statement.

Answer 6

Chapter 8, Problem 8.3BYP

1.a.

To determine

Specific identification method:

Under this inventory method, each unit sold or on hand is matched with its actual cost by referring the invoice that represents its actual purchase price. This method is followed by the companies who sells unique and expensive products that has low sales volume.

To describe: The key elements of Company H in regard to the specific identification costing method.

Answer 7

Chapter 8, Problem 8.3BYP

1.a.

To determine

Specific identification method:

Under this inventory method, each unit sold or on hand is matched with its actual cost by referring the invoice that represents its actual purchase price. This method is followed by the companies who sells unique and expensive products that has low sales volume.

To describe: The key elements of Company H in regard to the specific identification costing method.

Answer 8

1.b.

To determine

To explain: As to why this method is appropriate for Company H.

Answer 9

1.b.

To determine

To explain: As to why this method is appropriate for Company H.

Answer 10

2.a.

To determine

To state: The general criteria that Company H should use to determine inventory carrying amounts at December 31, 2016.

Answer 11

2.a.

To determine

To state: The general criteria that Company H should use to determine inventory carrying amounts at December 31, 2016.

Answer 12

2.b.

To determine

To give: Four examples of costs included in these inventory carrying amounts.

Answer 13

2.b.

To determine

To give: Four examples of costs included in these inventory carrying amounts.

Answer 14

3.

To determine

To state: The costs that should be reported in Company H’s 2016 income statement.

Answer 15

3.

To determine

To state: The costs that should be reported in Company H’s 2016 income statement.

Answer 16

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Answer 17

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Answer 18

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Answer 19

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Concept explainers

To explain: As to why this method is appropriate for Company H.

To state: The general criteria that Company H should use to determine inventory carrying amounts at December 31, 2016.

To give: Four examples of costs included in these inventory carrying amounts.

To state: The costs that should be reported in Company H’s 2016 income statement.

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Chapter 8 Solutions