Assume that a firm separately determined inventory under FIFO and LIFO and then compared the results 1 In each space below, place the correct sign less than ( ), or equal ( ) for each comparison, assuming periods of rising prices a LIFO inventory FIFO Inventory b LIFO cost of goods sold FIFO cost o...

1 a LIFO inventory less than FIFO inventory b LIFO cost of goods sold greater than FIFO co ...

Assume that a firm separately determined inventory under FIFO and LIFO and then compared the results. 1.

Question:

Assume that a firm separately determined inventory under FIFO and LIFO and then compared the results.
1. In each space below, place the correct sign [less than (<), greater than (>), or equal (=)] for each comparison, assuming periods of rising prices.
a. LIFO inventory _________ FIFO Inventory
b. LIFO cost of goods sold _________ FIFO cost of goods sold
c. LIFO net income _________ FIFO net income
d. LIFO income tax _________ FIFO income tax
2. Why would management prefer to use LIFO over FIFO In periods of rising prices?