1. LIFO considers the last unit arriving in inventory as the first one sold.

2. LIFO accounting is permitted in the United States subject to section 472 of the Internal Revenue Code.

3. These include: Specific Identification Lower of cost or market Weighted Average Cost Moving-Average Cost FIFO and LIFO.

4. Such reserve (an asset or contra-asset) represents the difference in cost of inventory under the FIFO and LIFO assumptions.

5. Assumes first units purchased are first ones sold Last in first out LIFO from ACCT 101 at Singapore Management University