Fife Company, a calendar-year public company, is preparing its first quarter following generally accepted accounting principles. For each of the items below, state whether the method being used is in conformity with generally accepted accounting principles with an explanation of your answer and appropriate justification: 5. For one inventory pool, there was a decrease in the base price of the inventory during the quarter. Company A did not reduce layers to determine cost of goods sold. Instead, they used the expected cost of replacing the decline in the inventory pool to calculate the first quarter cost of goods sold. 6. Fife takes a physical inventory at year-end for annual financial statements. Inventory and cost of sales reported in quarterly reports are based on estimated gross profit rates. Fife does have reliable perpetual inventory records. Fife Company, a calendar-year public company, is preparing its first quarter following generally accepted accounting principles. For each of the items below, state whether the method being used is in conformity with generally accepted accounting principles with an explanation of your answer and appropriate justification: 5. For one inventory pool, there was a decrease in the base price of the inventory during the quarter. Company A did not reduce layers to determine cost of goods sold. Instead, they used the expected cost of replacing the decline in the inventory pool to calculate the first quarter cost of goods sold. 6. Fife takes a physical inventory at year-end for annual financial statements. Inventory and cost of sales reported in quarterly reports are based on estimated gross profit rates. Fife does have reliable perpetual inventory records