Q3

Telfer Gold Inc. opened for business on April 1, 2019 selling unique jewelry, which it purchases from local artisans. During April, the company made the following purchases: Date April 1 April 3 April 5 April 10 April 13 Inventory Tag Number 001 002 003 004 005 006 007 008 009 Cost $2,750 600 1,150 2,300 700 1,200 3,900 600 1,700 2,400 April 26 April 30 010 On April 30, only inventory items 006, 008, and 010 remained in inventory. Which of the following statements about Telfer's cost determination method is false? Specific identification would not be the preferred inventory method for this company because it provides less accurate cost of goods sold and ending inventory values. The FIFO method identification is not the most appropriate for Telfer although the FIFO method is more popular in the industry. Specific identification is appropriate for Telfer because of the uniqueness of the company's inventory items. The comparatively small volume of inventory items purchased and sold makes specific identification a more practical one for Telfer