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Therefore, no assumption is necessary because the actual costs can be easily identified.

Cars are considered "specifically identifiable products," (Marshall, p. 152) as each can be identified via a serial number. In addition, each automobile is purchased and sold by specific unit. Because the cost data associated with each, individual automobile is easily traced, an accurate determination of ending inventory levels or the cost of goods sold can be determined...

Because the cost data associated with each, individual automobile is easily traced, an accurate determination of ending inventory levels or the cost of goods sold can be determined. Basically, when an automobile is sold, its cost is determined from the dealership's records, and then transferred from the Inventory account to the Cost of Goods Sold account...

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