When inventory quantities are maintained or increased during a period, the LIFO method prevents any part of the beginning inventory amount from becoming part of the period's cost of goods sold.

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Under the LIFO (Last-In, First-Out) method, the most recently acquired inventory is used to calculate the cost of goods sold. If inventory levels are maintained or increased, the older inventory (beginning inventory) remains unsold and does not become part of the cost of goods sold.

When Inventory Quantities Are Maintained or Increased During a Period