If a company has three lots of products for sale, purchase 1 (earliest) for $17, purchase 2 (middle) for $15, purchase 3 (latest) for $12, which of the following statements is true?

A.This is an inflationary cost pattern.

B.This is a deflationary cost pattern.

C.The next purchase will cost less than $12.

D.None of these statements can be verified.

Which of the following financial statements would be impacted by a current-year ending inventory error, when using a periodic inventory updating system?

A.Income statement

B.Balance sheet

C.Neither statement

D.Both statements