Turner & Taft, a partnership, had these inventory data:

Ending inventory at:

20X3

20X4

FIFO cost

$18,000

$ 20,000

LIFO cost

14,000

18,000

Cost of goods sold at:

FIFO cost

$ 85,500

LIFO cost

92,800

Sales revenue

138,000

Turner & Taft need to know the company’s gross profit percentage and rate of inventory turnover for 20X4 under

1. FIFO 2. LIFO

Which method makes the business look better on

3. Gross profit percentage? 4. Inventory turnover?