Question 4 asks us to calculate the gross profit under LIFO and FIFO The gross profit means revenue minus COGS, that means we need to go and find these So my LIFO revenue right up at the beginning is actually the same revenue for both of them The revenue is 597 So I'll fill that in there, I'll also put in as my FIFO revenue I need now need my LIFO COGS, LIFO COGS I've got just a little bit further up, it's in question 2 or question 3 Here I'm going to use 399 So my LIFO gross profit (revenue minus COGS), 198 Now let's do the same for FIFO, I need to go and find the FIFO COGS just up in question 3, 397 So if I take revenue minus COGS, I now get 200 So what do we notice here? We notice here that as LIFO had the lower inventory valuation than FIFO This means it also had the higher COGS which leads to lower profit that FIFO This is going to happen in an inflationary environment. So remember the LI of LIFO it does mean for Last in First out but you can also remember it as "Lower Inventory" And low inventory will also lead to lower profit and it has