Which of the following is TRUE about the LIFO method? The items purchased or produced first are treated as the first items sold during the year. The items purchased or produced last are the first items sold. O it is the default cost tracking method that the IRS will apply. O LIFO can only be used by taxpayers who do not have an applicable financial statement. Question 21 of 35. AAA, LLC, a single-member LLC, has a beginning-year inventory of $700,000, and an ending-year inventory of $900,000. During the year, it has total purchasing costs of $1.5 million. Its COGS for the year is: $900,000 $1.3 million $1.6 million $3.1 million