The Piano Studio Ltd. has provided you with the following information with respect to its piano inventory for the month of August. The company uses the specific identification cost formula.

Instructions
(a) Determine the cost of goods sold and ending inventory for the month of August.
(b) Determine the gross profit for the month of August.
(c) Discuss whether the specific identification cost formula is likely the most appropriate cost determination cost formula for the Piano Studio. Explain why this is, or is not, the case.

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Date Explanation Aug. 1 Beginning inventory Yamaha YH6318 Kawai KG1268 KawaiKG1520 Suzuki SZ5716 Suzuki SZ5828 Steinway ST8411 Steinway STo944 Suzuki SZ5828 Kawai KG1268 Yamaha YH4418 Yamaha ΥΗ5632 Yamaha YH4418 Steinway ST8411 Suzuki SZ6132 Suzuki SZ6148 Suzuki SZ6132 Yamaha YH6318 Yamaha YH5632 Supplier Serial # Unit Cost/Price $1,800 1,800 900 1,400 1,900 2,900 2,500 3,000 2,100 1,600 1,900 2,400 4,000 2,100 1,900 3,200 2,800 2,900 10 Sales 15 Purchases 18 Sales 22 Purchases 26 Sales