econd Street, Inc. has 7 units in ending merchandise inventory on December 31. The units were purchased in November for $180 each. The price lists from suppliers indicate the current replacement cost of the item to be $178 each. Which of the following statements is true of the effects of the adjustments to ending merchandise inventory and the cost of goods sold? Select one: A. The cost of goods sold would not be affected. B. The cost of goods sold would increase by $14. C. The cost of goods sold would decrease by $14. D. The cost of goods sold would increase by $2.