13. Which of the following would cause periodic ending inventory to be overstated? Purchased inventory with terms FOB destination were in transit and included in the ending inventory Goods held on consignment are omitted from the physical count. O None of the above O Goods purchased and delivered, but not yet paid for, are included in the physical count. 14. Which of the following indicates a positive trend for inventory management? Increasing cost of goods sold Increasing sales revenue Increasing inventory turnover ratio Increasing number of days' sales in inventory ratio 15. When prices are rising, which of the following costing methods will result in the highest amount of income tax expense? FIFO Cannot be determined from the information given LIFO Weighted Average 16. The FIFO inventory costing method (when using a perpetual inventory system) assumes that the cost of the earliest units purchased (i.e. the oldest inventory) are allocated in which of the following ways? First to be allocated to the cost of goods sold First to be allocated to the ending inventory Last to be allocated to the ending inventory Last to be allocated to the cost of goods sold