22. Damaged and obsolete goods that can be sold: A) Are assigned a value of zero B) Are included in inventory at their full cost. C) Should be disposed of immediately D) Are included in inventory at their net realizable valuce. E) Are never counted as inventory 23. The understatement of the ending inventory balance causes: A) Cost of goods sold to be overstated and net income to be understated. B) Cost of goods sold to be overstated and net income to be overstated. C) Cost of goods sold to be understated and net income to be understated. D) Cost of goods sold to be understated and net income to be overstated. E) Cost of goods sold to be overstated and net income to be correct. 24. During a period of steadily rising costs, the inventory valuation method that yields the highest reported net income is A) Specific identification method. B) Average cost method. C) Weighted-average method. D) FIFO method. E) LIFO method. 25. Bedrock Company reported a December 31 ending inventory balance of S412,000. The following additional information is also available: The ending inventory balance of $412.000 included $72.000 of consigned inventory for which Bedrock was the consignor The ending inventory balance of $412,000 included $22,000 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year Based on this information, the correct balance for ending inventory on December 31 is: A) S412,000 B) S318,000 C) $340.000 D) $390,000 E) $362,000