Module 8 Homework Ise complete sentences. Show and label all work to receive any credit for the homeworlk TastesRight Inc. has experienced increases in the prices for the products they resell in their dog food product lines. From the accounting records the product manager requests gross profits be determined under both FIFO and LIFO. The following is provided to the manager by the accounting group: FIFO Cost Flow Assumption: Sales of 12,000 units at $2 each Cost of Goods Sold Gross Profit $24,000 (11.000) $13,000 LIFO Cost Flow Assumption: Sales of 12,000 units at $2 each $24,000 Cost of Goods Sold Gross Profit (16,000) $ 8,000 The manager notes the higher gross profit of FIFO over LIFO and feels there should be a commitment to use FIFO based on this higher profit. Is the manager correct? a. b. Why is LIFO showing a higher cost of goods sold than FIFO? c. If all of the product that is on hand is sold, which method, FIFO or LIFO will show the higher d. If a manager is concerned about setting prices for their product on a timely basis, which gross profit? method would they prefer, FIFO or LIFO? what specific element of the chosen method enables this decision? A manager concerned about the replacement value of the ending inventory would prefer FIFO or LIFO? What specific element of the chosen method enables this information? e