Zinhle is the management accountant for a company that manufactures electronics in

South Africa. The company currently uses the first$-$In$,$ first$-$Out $($FIFO$)$ method for

inventory valuation, but the finance director is considering switching to the last$-$In$,$ firstOut $($LIFO$)$ method, due to the rising costs of raw materials. Zinhle asks for your

assistance in preparing a short response to the finance director explaining the possible

effect of switching from FIFO to LIFO on the company$$s financial statements. Make

use of an example of your own to illustrate how the cost of goods sold and ending

inventory would differ under each method.