FIFO tends to increase cost of goods sold when: O A. costs are declining O B. costs are constant O C. costs are increasing OD. FIFO will always yield the lowest possible cost of goods sold If ending inventory on December 31, 2016, is overstated, then O A. gross margin for the year ended December 31, 2016, will be understated OB. cost of goods sold for the year ended December 31, 2016, will be overstated O c. gross margin for the year ended December 31, 2017, will be understated OD. cost of goods sold for the year ended December 31, 2017, will be understated Victory Stables Ltd. for the year ended December 31, 2016, are as follows: Sales revenue $550,000 Cost of goods sold 110,000 Beginning inventory 80,000 Ending inventory 60,000 The Gross Profit percentage for 2016 is: O A. 0.80 OB. 1.83 O C. 1.57 OD. 0.20 City Sporting Goods started April with an inventory of 12 sets of golf clubs that cost a total of $1,836. During April, City purchased 26 sets of clubs for $4,342. At the end of the month, City had four sets of golf clubs on hand. The store manager must select an inventory costing method, and he asks you to tell him both cost of goods sold and ending inventory under these three accounting methods, assuming the periodic inventory system is used: 1a. Weighted average cost 1b. FIFO 2. If the store manager wants the most current cost for ending inventory, which method should he choose? Determine the cost of goods sold and ending inventory amounts under the two methods. (Round your interim calculations to the nearest cent. Round your final answers to the nearest dollar.) 1a. 1b. Average Cost FIFO Cost Cost of goods sold Ending inventory 2. If the store manager wants the most current cost for ending inventory, which method should he choose? because the cost of inventory is V, and therefore, results in the most current cost for The store manager should choose ending inventory. Which of the following would be included in the Inventory account on a merchandising company's balance sheet? O A. delivery costs OB. shipping costs from the manufacturer to the merchandising company O c. sales commissions OD. advertising costs