1. Testing of 2" gizmos: Included in the December 31, 202K, recorded inventory of gizmos at ACME International are 210 of 2" gizmos in the amount of $1,250. Using the attached invoices, what is the misstatement in valuation of the December 31, 202K, inventory for 2" gizmos, assuming FIFO inventory valuation (2 points)? Is inventory overstated or understated (1 point)? 2. Testing of 12" widgets: Included in the December 31, 202K, recorded inventory of widgets at ACME International are 2,800 of 12" widgets in the amount of $6,000. Using the attached invoices, what is the misstatement in valuation of the December 31, 202K, inventory for 12" widgets, assuming FIFO inventory valuation (2 points)? Is inventory overstated or understated (1 point)? 3. Assuming the misstatement found in the two items tested above are representative of all inventory, what is the projected misstatement in the entire population (consider using the ratio approach as done for CVS) (2 points)? Is inventory overstated or understated (1 point)? 4. What would your misstatement for part 2 be if the January 2, 202Y, acquisition was for 2,300 widgets at $2.10 unit price each instead of $2.30 each (freight per unit remains the same) AND the price list indicated the selling price was $2.10 per unit. (2 points)? Is inventory overstated or understated (1 point)