Merchandise inventory Is a current asset a .Is a long-term asset bo Is classified with investments on the balance sheet.co Includes supplies the company will use in future periods do rThe LIFO inventory method assumes that the cost of the latest units purchased are the first to be allocated to ending inventory a o the first to be allocated to cost of goods sold .bo .the last to be allocated to cost of goods sold .co .not allocated to cost of goods sold or ending inventory do