Answer
The Last In First Out method, allocates costs on the assumption that the last goods purchased are sold or used first. If the amount of the inventory is calculated at the end of the month under a periodic system, then it would be assumed that the total quantity sold or issued during the month would have come from the most recent purchases, and ordinarily no attempt would be made to compare the dates of purchases and sales.
Work Step by Step
Since it would be assumed that the total quantity sold or issued during the month would have come from the most recent purchases and no comparison of dates would be executed this may not be accurate.
