Quality of earnings, Lifo should be used in Income and Fifo for BS

Life should be used for the income statement, because of lower earnings correct. And Fifo for inventory under the Balance sheet, this reports higher values. Why aren’t low inventory $$ values good? This means that the company is saying it has fewer assets and is more conservative?

This is under inflationary prices (the usual case). Prices are rising, but I remains low because we are using the old prices. This misrepresents the actual value of the inventory which should be measured according to its REPLACEMENT cost. Assuming the firm is a going concern, every unit of inventory used means the firm has to spend to replace it.