# Enrolled Agent Exam [Part 2] 53, Inventory Methods — FIFO, LIFO, Specific ID

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Podcast: [Finance Exam Prep](https://stenobird.com/podcast/finance-exam-prep-7658413)
Published: 2026-06-19T22:41:20+00:00
Episode link: https://open-exam-prep.com/
Audio file: https://episodes.captivate.fm/episode/af7b29c4-f9e6-4cfe-9196-302570256a37.mp3
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Duration seconds: 225

## Resource

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - How the FIFO method assumes the first units purchased are the first ones sold, typically resulting in higher taxable income during inflationary periods. - How the LIFO method assumes the last units purchased are the first ones sold, leading to a higher Cost of Goods Sold (COGS) and lower taxable income when prices are rising. - The critical LIFO conformity rule, which mandates that if a business uses LIFO for tax purposes, it must also use it for financial reporting. - The procedural requirement of filing Form 970 with the IRS to properly elect the LIFO inventory method. - The application of the Specific Identification method for unique, high-value inventory items where the actual cost of each item can be tracked. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

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