answers please

1. In a period of rising prices, a company changes to Last-In-First-Out method of inventory valuation, the effect on closing inventory value and on profit compared with the First-In-First-Out method will be: a) Higher closing inventory value and higher gross profit. b) Lower dosing inventory and higher gross profit. c) Lower closing inventory and lower gross profit. d) Higher closing inventory value and lower gross profit. (2marks) 2. The following details for component kums have been made available. Maximum usage per day 10 units Minimum usage per day 4 units Maximum lead time 5 days Minimum lead time 3 days Ordering cost K50 per order Inventory holding cost K2 per item per year Annual demand 1,750 units Using the above information, calculate the maximum inventory level for kums. a) 346 b) 296 c) 334 d) 324 (2 marks)