2. LIFO liquidation a. Assume that in 2021 Inscentives purchased 900 candles for $1.35 each and that it sold 900 candles for $3 each. Calculate its cost of sales and gross profit using FIFO and LIFO methods. You need to refer to the previous problem to look at the initial inventory value for the two methods. In the past, to make problems easier, we have often assumed that the initial inventory is the same for each method. In this problem and in real life that is not true. b. Assume that in 2022 Inscentives sold 300 units but purchased no units. This would involve partial liquidation of it inventories if it uses LIFO. Assume that the units are sold for $3 per unit. What is the cost of sales and gross profit for 2022 under FIFO and LIFO? Which method had higher gross profits on those 300 units? 2. LIFO liquidation a. Assume that in 2021 Inscentives purchased 900 candles for $1.35 each and that it sold 900 candles for $3 each. Calculate its cost of sales and gross profit using FIFO and LIFO methods. You need to refer to the previous problem to look at the initial inventory value for the two methods. In the past, to make problems easier, we have often assumed that the initial inventory is the same for each method. In this problem and in real life that is not true. b. Assume that in 2022 Inscentives sold 300 units but purchased no units. This would involve partial liquidation of it inventories if it uses LIFO. Assume that the units are sold for $3 per unit. What is the cost of sales and gross profit for 2022 under FIFO and LIFO? Which method had higher gross profits on those 300 units