A companys gross profit as a percentage of sales increased from 24% in the year ended 31 December 20X1 to 27%

in the year ended 31 December 20X2.

Which of the following events is most likely to have caused the increase?

A An increase in sales volume

B A purchase in December 20X1 mistakenly being recorded as happening in January 20X2

C Overstatement of the closing inventory at 31 December 20X1

D Understatement of the closing inventory at 31 December 20X1