Chapter 6, Problem 8Q

To determine

Specific Identification: Specific identification method can be said as identifying the items precisely which are being sold and those which are being stored as closing inventory. The companies are required to keep perfect records of the original cost of each and every individual items of the inventory.

To Explain: The impracticality and inappropriateness of allocating cost of goods available for sale based on the actual physical flow of the goods.