The LIFO and AVCO videos are live! Link to the whole Inventory Playlist is in the video description. ⏱️TIMESTAMPS 00:00 - Intro 01:02 - When do we need Inventory Cost Flow Assumptions? 02:09 - What are Inventory Cost Flow Assumptions? 02:19 - The three assumptions: FIFO, LIFO and AVCO 02:41 - How FIFO works (First In First Out) 03:01 - Accounting with FIFO - Example 04:02 - Step 1: Draw an Inventory Cost Flow Table 04:19 - Step 2: Enter what you know 06:09 - Step 3: Fill in the blanks 09:00 - Step 4: Cost of Goods Sold and Closing Inventory 09:42 - Advantages of FIFO 10:08 - FIFO vs LIFO vs AVCO 10:20 - Disadvantage of FIFO
Wow just today you came out with the video I needed for my final tomorrow! Thanks so much, you've taught me twice as much as my teacher. Keep it up! I may actually pass because of you :) Love from Canada
Amazing content!! Very well explained. It was way better than the explanation provided my lecturer. This is the best channel for accounting I came across so far. Thank you very much for this and I hope you continue putting videos on accounting.
And here I am finding out about this guy 2 years later after the video is posted 😌 but the value of the video feels like it was posted today❤️ priceless
I've been watching your videos now for a couple of months. Thankfully I discovered your channel when I started my undergrad in accounting. I started watching your videos simultaneously with my class lessons. I decided to stop procrastinating and go ahead and purchase your combo pack of all the cheat sheets. Not only do I need them lol but I also wanted to support you and your channel because I truly appreciate the time and effort you put into these videos and sharing your knowledge with us for free. I love your videos and all the animation and emotion you put into them. Your good looks and British accent is an added bonus :).
@@AccountingStuff Thank you James! Do you think you'll do a video on petty cash? It seems pretty simple and straight forward but I seem to still get hung up on some of the concepts. Thanks in advance
newbie to the world of Accounting and knew absolutely nothing about it. With your amazing videos I scored an A- for my final grade! Yay! Thanks so much!
Ive just learned it yesterday and didnt understand anything. Luckily I see your video today. Thank youuu. Hope that you will upload LIFO and AVCO soon.
You explained this amazingly! Seriously you’re videos have helped clear up a lot of the confusion I had for my class. I might actually pass 😂 Managed to explain in like 10 minuets what I haven’t been able to understand in a week!
Thank you so much! Before, I know the calculations, but I want to look for some more explanations just for me to know the sense and the principle of what I am computing. When I watched your video, everything makes sense now 😊😊😊
Accounting Stuff it was definitely a tricky one because of the questions about bonds and shares, but I absolutely nailed the subjects you‘ve covered in your videos. Great work!!!
I'm actually watching this for work instead of for college (I'm a report programmer) with my original skills only being in programming and none in economics xD So this helps tremendously.
I am going through ABasics for beginners playlist, I should say that this are the best explanations I have ever heard of. However, I have a small question for this video. Shouldn't we just increase the selling price of our goods with a higher cost accordingly? As given increases will shrink our profit margins. Thank you!
I also got confused but I watched it again. So he got the 500 units sold and subtracted 220 units because it is the opening amount. First In First Out 500-220=280. Pretty much he subtracted the older units first (220).
Brilliant sir. Very helpful. But can I make a suggestion? Go buy yourself a decent mic, and record in rooms with less echo, or hang something that absorbs sound. It would add an extra layer of professionalism to your already very professional video editing and excellent information. Keep up the great work. :) * *I just noticed this was made 3 years ago. If you've improved the sound quality since then, obviously, disregard the second part of my comment. :)
what if there is more than one addition? do we just add the quantities for additions and put it in the table or do we repeat additions twice on the table?
this made everything easier but the tables we use in class are different and it's throwing me off I understand it a bit better now tho thanks for making a video i knew i was gonna find principles of costing on ur channel
I actually have a question regarding the fifo method- Suppose the issue from 1st batch of purchase has been returned back at a later date. Why do we add it back to the 1st batch in the ending inventory? Could we simply not have kept it as a seperate balance from the 1st batch and if we did that, would it not be more in line with *First in First out*?
Do we calculate the value of the inventory that we posses in our godown or do we calculate the value of inventory for the inventory that we ownership for regardless of where the stock/inventory is physically Let’s say, I’ve sent goods to my agent(on a consignment basis). Do I have to deduct the value of stock from my inventory? But I still own the goods although I don’t have them physically in my godown
