Question $1$: Inventory

The following Income Statement is based upon the FIFO cost flow assumption:

Ginger Bread Productions Inc

Income Statement

First$-$in$-$first$-$out Based Assumption

For the Year ended December $31,2023$

If the Last$-$in$-$first$-$out cost flow assumption was used Cost of Goods Sold would increase by $$75,000.$

Requirement:

Your are a staff accountant at Ginger Bread Productions. Write a detailed memorandum to your colleagues explaining the implications if the LIFO cost flow assumption was used for $2023.$