Which of the following inventory valuation methods minimizes income tax expense during a period of rising inventory costs? A. specific identification O B. last - in, first-out O C. first - in, first-out OD. weighted - average Defective, damaged, or otherwise unsuitable merchandise that returned to the seller is referred to as purchase allowances by the purchaser. True OO False A company uses the weighted - average method of inventory valuation under a periodic inventory system. The company began the year with a zero inventory balance. They had the following transactions during the year. 1. Purchased 65 units at $7 per unit 2. Purchased 130 units at $7 per unit 3. Sold 110 units at $11 per unit 4. Purchased 55 units at $8 per unit 5. Sold 110 units at $13.25 per unit At the end of the year, the company counted the inventory and found 30 units remaining. Calculate the cost of goods sold for the year. (Round the unit costs to two decimal places and total costs to the nearest dollar.) O A. $217 O B. $7 O C. $1,588 OD. $1,805 The ending merchandise inventory for the current accounting period is overstated by $3,500. What will be the effect of this error? O A. The cost of goods sold for the current accounting period will be overstated by $3,500. O B. The ending merchandise inventory for the next accounting period will be overstated by $3,500. OC. The net income for the current accounting period will be overstated by $3,500 OD. The cost of goods sold for the next accounting period will be understated by $3,500