Can somebody explain why the correct answer is B? I know why II is correct, but I don't know why I is incorrect and III is correct.

10. Below is information regarding inventory purchased and sold by Pikes Peak Tea Company: Pikes Peak had no beginning inventory in 2016 and during 2016 it purchased inventory of 100 tea kettles for $60 each. In 2017 Pikes Peak Tea Company sold 80 tea kettles for a retail price of $90 each. In 2018 the replacement cost of the tea kettles changed to $50 per tea kettle. Pikes Peak did not sell any inventory in 2018. Which of the following statements are correct for Pikes Peak Tea Company? Pikes Peak would have a total ending inventory of $1,200 at the end of 2018 VII Pikes Peak would record a credit to inventory for a total of $4,800 in 2017 X TIK Pikes Peak would record a debit to cost of goods sold for $200 in 2018 a. I, II, and Ill are all correct statements b. ll and Ill are the only correct statements, not C. I and II are the only correct statements, not III d. III is the only correct statement, not I and II e. ll is the only correct statement, not I or