This information relates to the next two questions. Low Tech Manufacturing Ltd. just commenced operations in the current period and has made an error when classifying its costs into inventoriable vs non-inventoriable costs. Fortunately, the error only involved one cost item: its indirect materials cost. Which of the following represents the most likely impact of this error on the Low Tech's current period net profit (compared to its current period net profit if it did not make the error)? Some of the company's inventory remained unsold at the end of the current period. 1. Current period's net profit under misclassification will be higher: OR 2. Current period's net profit under misclassification will be lower: OR 3. Current period's net profit under misclassification will be the same as current period's net profit under correct classification. O Statement 1 only Statement 2 only Statement 3 only Now assume that all of the company's inventory are sold at the end of the current period (i.e., ending finished goods inventory and ending Work in Progress inventory are both zero). Which of the following represents the most likely impact of this error on the Low Tech's current period Cost of Goods Sold (compared to its current period Cost of Goods Sold if it did not make the error)? 1. Current period's COGS under misclassification will be higher: OR 2. Current period's COGS under misclassification will be lower: OR 3. Current period's COGS under misclassification will be the same as current period's COGS under correct classification Statement 1 only Statement 2 only Statement 3 only