1. Suppose that Dom began a landscaping business in 2017 . In that year , he adopted the last - in first- out ( LIFO ) inventory - flow method for his business inventory of shrubbery by using it for the year on his tax return . In 2017, he purchased the following four batches of shrubs in 2017 ( total cost per batch below ) . Shrubs Purchase Date Direct Cost Other Inventoriable Costs Total Cost 200 July 21 $ 2, 000 $ 200 $ 2, 200 150 August 15 $ 2, 000 $ 100 $ 2, 100 100 October 30 $ 2 , 200 $ 400 $ 2, 600 140 November 10 $ 2, 700 $ 100 $ 2, 800