1. Craig wanted to know if it is okay to change from the FIFO method to a different method. He thinks net income could be lower using LIFO and he can save on his personal taxes. Is he correct? Do you think Craig should do this? Why or Why not? Include in your answer any accounting rules and principles that would apply. (5 points) 1. Prepare the Inventory Stock Record and gross profit for the Sprinkler Heads for Craig's Design and Landscaping on the following Complete the Inventory Record using the FIFO (first-in first out) method for Sprinkler Heads using the Sales and Purchase information below: 2. Craig has some questions regarding reporting and recording inventory. Answer the following questions on the Questions sheet. Craig asked what measures of internal control should be implement to protect the inventory. Discuss at least 4 measures the company should implement. Also, explain to Craig why is is so important to maintain these good controls. Inventory Record: Sprinkler Heads FIFO \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Date } & \multicolumn{3}{|c|}{ Purchases } & \multicolumn{3}{|c|}{ Cost of Goods Sold } & \multicolumn{3}{|c|}{ Inventory on Hand } \\ \hline & Quantity & UnitCost & Total Cost & Quantity & UnitCost & Total Cost & Quantity & Unit Cost & Total Cost \\ \hline \multicolumn{10}{|l|}{ Sept. 2} \\ \hline & & & & & & & & & \\ \hline \multicolumn{10}{|l|}{6} \\ \hline & & & & & & & & & \\ \hline \multicolumn{10}{|l|}{8} \\ \hline & & & & & & & & & \\ \hline \multicolumn{9}{|l|}{13} & \\ \hline & & & & & & & & & \\ \hline \multicolumn{10}{|l|}{14} \\ \hline & & & & & & & & & \\ \hline otals & & & & & & & & & \\ \hline \end{tabular} Note: Not all cells will have data. Use cells as needed. Calculate the Gross Profit and Gross Profit \% on the Sales for the Sprinkler Heads for the month of September