Question 7

A company uses a periodic Inventory system. The company had beginning inventory of 3 units that cost $5 each. During the month, 17 units were purchased for $6 each. The company sold 15 units during the month and had 5 remaining in ending Inventory. If the company uses FIFO instead of LIFO to calculate cost of goods sold, then cost of goods sold will be Multiple Choice higher using FIFO, leading to higher gross profit and higher income taxes. O lower using FIFO, leading to higher gross profit and higher income taxes lower using FIFO, leading to lower gross profit and lower income taxes higher using FIFO, leading to lower gross profit and lower income taxes