Multiple Choice Question

Risen, Inc. has a beginning inventory of $$16$ which consists of $2$ units at $$8$ each. It purchased $10$ units at $$10$ each. It sold $5$ units for $$20$ each. Which would result

in the higher Gross Profit, FIFO, or LIFO and why?

LIFO because the older, less expensive units are assumed to be sold first making cost of goods sold lower and gross profit higher than LIFO

LIFO because the newer, more expensive units are assumed to be sold first making cost of goods sold and gross profit higher than LIFO

FIFO because the older, less expensive units are assumed to be sold first making Cost of Goods Sold lower and Gross Profit higher than LIFO

FIFO because the newer, more expensive units are assumed to be sold first making cost of goods sold and gross profit higher than LIFO