16-41 Purchasing operations and lifo versus fifo

study appendix 16a. suppose that the evaluation of the purchasing officer for a refinery is based on the gross margin on the oil products produced and sold during the year. during the year , the price of a barrel of oil has increased from $50 to 70$ . all the inventory of oil at the beginning of the year is valued $50 or less. on the last day of the year, the purchasing agent is contemplating the purchase of additional oil at 70$ per barrel. is the agent more likely to purchase additional oil if the company used the fifo or the lifo method for its inventories? explain.