A. will always be lower when using LIFO rather than FIFO, during a period of rising B. will be the same amount when using LIFO or FIFO, during a period of rising prices. 6. Cost of goods sold: prices. 7. D. is the number of units of inventory purchased multiplied by cost per unit of inventory Merchandise inventory: A. is an asset on the balance sheet. B. is the cost of inventory that has not been sold. C. is neither A or B. D. is both A and B. 8. Inventory turnover: A. indicates how rapidly inventory is sold. B. is the ratio of purchases to average inventory. C. both A and B. D. none of the above 9. The Merriweather Merchandising Company had the following records: Net sales $88,500 Beginning inventory 10,500 Purchases 28,000 Freight-in 2,000 Sales salaries expense 9,700 Ending inventory 12,000 What is the cost of goods sold for this company? A. $26,500 B. $29,500 C. $28,500 D. $31,500 10. Refer to Question 9. What is the gross profit for this company? A. $62,000 B. $60,000 C. $50,300 D. $52,300