Using the last-in, first-out (LIFO) method, we assume that the last units purchased (the last in) are the first ones sold (the first out). In other words, the very last unit purchased for the year is assumed to be the very first unit sold. While this pattern of inventory flow is unrealistic for nearly all companies, LIFO is an allowable reporting practice. Companies that use LIFO for reporting purposes calculate cost of goods sold and ending inventory only once per period—at the end. This means that companies don’t keep a continual record of LIFO amounts throughout the year. If Mario’s sold 800 units throughout