The LIFO method assumes that the costs for the newest goods (the last ones in)are used first and the older costs are left in ending inventory.
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LIFO stands for "last in, first out" which means that the cost of the newest inventory items are assigned to goods sold first. The older items are left in ending inventory, which results in a higher cost of goods sold and lower net income. This assumption is the opposite of FIFO (first in, first out) which assigns the cost of the oldest inventory items to goods sold first.

The LIFO Method Assumes That the Costs for the Newest