Hey there, it's been a while! I'll link to the playlist in the description once I've released the rest of the Inventory Mini-Series. Here are the timestamps for those who'd like to jump ahead... 00:55 - Manufacturing vs Merchandising Businesses 01:23 - Inventory in a Manufacturing Business 01:36 - Inventory in a Merchandising Business 02:12 - Why Inventory is an Asset 02:29 - Inventory Worked Example - Question 03:22 - Inventory Worked Example - Solution 08:41 - Recap
You’re a life saver! We’re covering this in my accounting class and I didn’t understand it! Thank you so so much! Don’t stop uploading! All us undergrad students thank you!
Everyone says accounting is so easy but I find it really confusing at times, if it weren't for your videos I would be failing my classes. Thank you so much!!
You are the only reason Im doing well in my accounting class. I’ve purchased the cheat sheets and A&Q packs, they are so helpful!! Keep the videos coming 😄
I have this competition in a week and I've been watching all your vids. It's been saving me, without it I would've been doomed. You make it all look so simple. Thanks!
The fact that I don't even read the book for my classes anymore, I just watch your videos and take notes. What my professor spends two to three 4 hour lectures explaining in a boring way, you manage to do in a blip! You're my saviour.
Your videos are SAVING my life in my financial accounting class. You break it down in an understandable way and the edits make the content much more engaging. Thank you!
O MY GOD! I have never seen anybody who can explain all this accounting stuff so clearly, so simply so understanable. I am studing ACCA FA, and each time I dont understand smth I am searching for your vision of that topic. THANK YOU VERY MUCH!!!!!! If I would get F3 and become rich ( 1000$ per month means rich in my country ) , I will find you to say thank you personally ❤
You're going to be the reason I pass my accounting exam tomorrow (I really hope I do!) Its been so hard to teach myself (my professor isn't very good.)
Hey James, have been watching your videos for many doubts and I'd say it's absolutely amazing to rely on you for different things. We use IND AS here instead of IFRS in the case of corporates dealing with regional transactions but IND AS has so many similarities with IFRS and there's some different of just terminology that's all. For example we use traditional norms with modern ones so we treat account payables as creditor's A/C and vice versa. Even in making of the financial statements we have trading account although not much different since it's a specific account for clarification including sales and purchases and costs incurred ( depends on manufacturing unit ) which lets us find gross profit/loss then operating expenses and revenue as you described after used for net profit including taxes in it only.
I'm starting intermediate accounting in a few days at uni, and these inventory videos definitely helped refresh my memory! Awesome job, I also purchased your cheat sheets! Your channel saved me!
Thank you for making these videos!! I've gone back to school in my late 40's and I find your videos the easiest to understand compared to the others my school suggests watching to assist learning in our online class. Now to buy your cheat sheets :) Keep up the great work!
hiya James :) just wanted to say i especially liked the music starting at 2:51, it was really relaxing and made it way easier for me to focus (not to say anything is distracting, it just improved my learning!) keep up the great work xx
I missed my class when my professor illustrated this topic. Thanks for your videos and I am considering skipping my accounting class and just watching your videos.
Hello James, thanks for sharing the topic on Inventory! It's very clear and easy to understand! May I know will you be making a video on Inventory in a Manufacturing Business as well?
I am a sophomore majoring in accounting and I was really struggling but your videos have helped me sooo much. Will you be doing videos and selling templates of tips for financial statements such as the income statement etc.?
Loves your videos. Really deep accounting! I usually have to watch them again and again, but a lot useful information. Please verify this question for me: For cash accounting, can I write off ALL on my product expenses as COGS as soon I pay for it regardless when I sold the item? For inventory shrinkage , I can write off as GOGS or I have to deduct it from GOGS? Thanks!
Thank you for great help! If I received a 1099K at the end of the year from an Amazon reseller , how do I account for COGS to report it on schedule C .
Hey, I really appreciate your videos they have been a great help! We own a cleaning business and I believe we would account for the supplies used on the job as cogs or cos since we can’t clean without them. It’s not exactly a “manufacturing business” but I believe would be accounted for in the same manner. Would I be correct?
Hey, James.. Can you make a quick video covering bad debts, equity statement and a introduction to markup and margin. I hav exam on upcoming Saturday. As you are in Canada so it would be your Saturday's mid-night
Thank you very much for the detailed explanation, I just have once quick question on the journal: if we bought inventory in Jan 21 but hold for 6 months until sold in Jul 21 Is that means we can only recognize the cost in Jul 21 (Dr Cost, Cr Inventory)？thanks
Great video, does a service business that keeps consumables stock in their inventory like films, chemical cans for example to be used as part of the service and these items are charged per Item used, falls under Manufacturing and merchandising? Thanks.
Hi james, your videos are great...thanku so much for saving us all...i want to request...i know its not possible..but if you could make cheat sheets free.. as i can't buy them.. : )
Hey there, thanks for your request! Unfortunately I can't make the cheat sheets free. They help support this channel and without them I probably wouldn't be able to keep on creating these educational videos.
Hey there! Thank you for these videos. I'm having trouble with adjustments to Merchandise Inventory and Cost of Goods Sold T accounts. For example, I'm given a list of transactions like "Cost of merchandise sold to customers in sales transactions $100K" and then "Invoice cost of merchandise purchases $150K" as examples and I can't understand where they go! Do you have any general tricks or clues on how to work on these? Thanks!
I run my own manufacturing. I always get confused with the cogs calculations. At the end of the month do I just take each product type units sold and multiple it by the production cost to get the cogs ? Or I have to do the beginning inventory +purchase etc calculations?
Yes it would, raw materials are part of inventory. So on purchase you would: dr purchases raw materials, cr cash / accounts payable. However normally in accounting software the purchase is recorded in the P&L and not automatically to the BS so to reclassify the materials to the BS (if unsold at year end) you would; dr raw materials BS, cr closing inventory P&L. Thus they become an asset and the credit to inventory offsets the purchase cost. Hope this helps
And I know theres more to come but when you get a chance I'm struggling with understanding the discounting math so exp 2/10 net 30 I know it means 30 days to pay but the 2% discount is different than normal way and how to journalize it
Hi,sir...i hope that you see my comment because i have somethimg that i really dont understand...under the equity in the balance sheet,why there is $3 in retained earnings??i just cant understand where is it come from???
The profit (or loss) determined in the Income Statement affects Retained Earnings. In this very simple example, the profit is $3, so that contributes to Retained Earnings which makes it $3.
@accountingstuff- thank you again. Any luck that u could do a video in dollar value lifo . And also on lower than cost or market or NRV ... pleasssseeeeee
Accounting Stuff thank you.... any chance to see something on investments and accounting for them? Am prepping for cpa like many others .... u r really good at what you do. Please continue and wish you all the best. You must know what you are doing is helping a lot of people who need it . Thank you
Someone please help me, it says Revenue was credited by $7.00 so way are we gaining Revenue if it was credited not debited? Shouldn't we be getting revenue i don't understand why we are losing it.
Cr Sales by 25,000 (to increase income) and Dr Cash or Accounts Receivable by 25,000 (depending on the payment terms). Then Dr Cost of Sales (to increase expenses) and Cr Inventory (to reduce assets) :)
hello, i was wondering if you can make a video about closing entry journalized, closing entry and post-closing trial balance, along with the meaning and example for purchase discounts and multi-step income statement please. Im really struggle with the all the table and stuffs 🥲
@@AccountingStuff and you might be wondering why I recently looked up your videos, well I aced my finals with your amazing videos as its a fun learning experience! No words to thank you!
I am halfway through the basics playlist and I cannot stress how great you are at explaining topics. Im doing my MBA right now and I cant force myself to read dozens of pages a day on accounting but these videos are so effective that I can learn so much and retain the information. I tell everyone in my class how helpful these videos are and now most of the class uses DEALER lol. I am very grateful you put this series together, thank you!
