formation 2. Last-in, first-out (LIFO) Costs flow in the reverse order incurred. $70 May 6 $65 May 3 $45 May 1 $100 Income Statement Net sales................ Cost of goods sold.. Gross profit............ 70 $ 30 A Balance Sheet Inventory $110 Balance Sheet Inventory $1.10 Knowledge Check 01 Assume that we use a perpetual inventory system and that five Identical units are purchased at the following dates and costs: April 5 April 10 April 15 April 20 April 22 $10 $12 $14 $16 $17 One unit is sold on April 25. The company uses the last-in, first-out (LIFO) inventory costing method. Identify the cost of the ending inventory on the balance sheet. Cost of the ending inventory