You can find the FIFO and AVCO videos in the Inventory Playlist (link in the vid description). ⏱️TIMESTAMPS 00:00 - Intro 00:48 - What is the Inventory Calculation? 01:04 - What do Inventory Cost Flow Assumptions do? 01:26 - What are Inventory Cost Flow Assumptions? 01:38 - The three assumptions: FIFO, LIFO and AVCO 01:50 - How LIFO works (Last In First Out) 02:01 - Accounting with LIFO - Example 02:57 - Step 1: Draw an Inventory Cost Flow Table 03:10 - Step 2: Enter what you know 04:32 - Step 3: Fill in the blanks 06:52 - Step 4: Cost of Goods Sold and Closing Inventory 07:30 - Advantage of LIFO 07:44 - Disadvantage of LIFO 08:01 - FIFO vs LIFO vs AVCO
Knowing that so many students are learning more in James's videos than their accounting courses really makes me believe if I master these concepts in these videos, despite being confused in my current program, that I can be successful! Thank you for the content!
I'm almost 60 yr old, and recently hired as a controller. I had a mediocre accounting background. Your videos are likely to help save my job!!! Thank you!!!!
I can't believe how easy this method is! That goes for FIFO and AVCO too, my college course totally confused me and took far longer explaining it!!! Thank you so so much, greatly appreciated:)
Having my final in like 30 minutes, this works a lot better than an exce sheet losely explaining all of this. I was a bit fuzzy on the details but this has really helped actually, thanks!
I just wanna say that I like the way you impart the knowledge. It is just so engaging. Anyway, thanks a lot for helping me out with accounting. I really struggled without your videos ...
I would greatly appreciate it if you made a video about dollar value LIFO. I am a new subscriber and I found your channel through my recommendations. I am currently studying for the FAR section of the CPA Exam and your videos have been very helpful!
Much thank you to this and the FIFO video. I was very confused how the online course I'm taking was getting the answer and this finally made me understand.
Amazing video James, as always! I just wanted to comment that one of your videos really brought back my desire to study Accounting ( the one with the DEALER method ). Now my Accounting exam is in exactly 1 week, but I feel much more confident after watching your videos! I'm so happy that I'm not one of those people who let debiting and crediting make them give up on Accounting 😂 and it's only thanks to you!
This serie of videos about the inventory cost may save my ass for my exam of tomorrow so thanks a lot. A recommendation for future a future video: How a company issue shares/ different types of shares ;)
Great video as usual James! Thanks for continually sharing your knowledge! I hope you can also do a video next time on BRANCH Accounting. What it is and how it is done correctly. Is this the accounting method used if you have multiple branches/locations? Also maybe a video on how to do BUDGETING, how to create a budget plan for a business. Really appreciate your work! Thanks again!
Hi James. I really love your videos. They're really helpful. I hope you can make a video on analytical petty cash book and the imprest system in the future. I'm looking forward to it. Thanks
Thank you so much for this helpful video along with your other videos that are helping me a lot as a new accounting student. But I have 1 question and my final is tomorrow so hope u can help me. In LIFO should I record the beginning inventory or not? if yes then when should I record it and when I shouldn't.
Can you please make a video explaining the difference between GL accounting and auditing and any career tips for each? Right now I am a GL accountant for a consulting firm but I want to know if I should make a switch to auditing and if I have the skills to do so.
Thanks for the suggestion, I would like to make some more career-orientated vids in the near future. Moving to Audit could help speed things up for you significantly
Great videos dude it helps alot even tho i haven't found an easier way for me to remember this,,I really wanted to know where did you get the 100 units from when you said 1200+100x2 🤔🤔🤔
You have to take 100 units from existing stock to account for the 500 units sold. Those 100 units cost $2 each. Thus the $200 + $1200 = $1400 this gives you the cost of goods
James, could you help me, please? 😅 I am struggling to understand the best method to use for this particular question: "Suppose a company bases its evaluation of the purchasing officer for a refinery on the gross margin on the oil products produced and sold during the year. During the year, the price of a barrel of oil increased from 80 to 90 dollars. The value of the inventory of oil at the beginning of the year is 80 dollars or less per barrel. On the last day of the year, the purchasing agent is contemplating the purchase of additional oil at 0USD per barrel. Is the agent more likely to purchase additional oil if the company uses the FIFO or LIFO method for its inventories? Explain." I appreciate your kindness. Thank you 💜
@@AccountingStuff Yeah and you know just to also be on the safe side, you can do on companies that have already shut down or closed. So you wont get any messages or notice from companies that you are shading them. For example, you can show how Enron manipulated their books. A company that has shut down. Now you might ask like why do on old companies or even older like some long forgotten companies, its because "Those who do not learn History are doomed to repeat it." There are countless ways a company has manipulated their books and so much so has been done under the sun. Would be a adventure to see how they did so, plus love learning more. (Yup i blame you for my interest in accounts man.....) Take care, have a great day.
Would your opening balance cost per unit still be $2 in the next accounting period? If that's the case then will it be $2 forever until you sell all of your inventory?
