True or false

1. Transactions that affect inventories on hand have an effect on both the balance sheet and the income statement. 2. The more inventory a company has in stock, the greater the company's profit. 3. Goods out on consignment should be included in the inventory of the consignor. 4. The FIFO inventory method results in an ending inventory valued at the most recent cost. 5. The specific identification method of inventory valuation is desirable when a company sells a large number of low-unit cost items. 6. An error that overstates the ending inventory will also cause net income for the period to be overstated. 7. The cost of goods available for sale consists of the beginning inventory plus the cost of goods purchased