First In First Out (FIFO) | Inventory Cost Flows

Рет қаралды 200,869

Күн бұрын

💥Inventory Cost Flow Assumptions Cheat Sheet → accountingstuff.com/shop
In this video you'll learn about Inventory Cost Flow Assumptions. There are three of these:
▪ FIFO - First In First Out
▪ LIFO - Last In First Out
▪ AVCO - Weighted Average Cost Method
This accounting tutorial focusses on FIFO. You'll discover how the First In First Out method works and get to practice using it with an example. This episode is part of a mini-series exploring Inventory in Accounting. You can find the link to the whole playlist here ⬇️
🔗Full Inventory Playlist → • Accounting for INVENTO...
🔴Subscribe for more Accounting Tutorials → geni.us/subtothechannel
⏱️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
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#accounting #accountingbasics #accountingstuff

Пікірлер: 222

@AccountingStuff 4 жыл бұрын

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

@abdirisakabdimahadahmed1536 4 жыл бұрын

Thanks sir you helped me for fifo and now i am going to watch lifo and tomoraw my exam thanks sir💪💪

@AccountingStuff 4 жыл бұрын

@@abdirisakabdimahadahmed1536 Let me know how it goes

@abdirisakabdimahadahmed1536 4 жыл бұрын

@@AccountingStuff sir my exam goes well i thinks i will 50/60 thanks sir💪💪

@alimoha9431 4 жыл бұрын

@Accounting Stuff the one you did is one sale plz do another one with 3-4 sales plz

@adepejuoyinadeadebola1240 3 жыл бұрын

@@alimoha9431 yes please do the one with more than one sale

@apocailypse3766 4 жыл бұрын

When you don’t go to class and watch accounting stuff instead.... while getting better grades

@anunentitledmotivatedmille7731 3 жыл бұрын

Your emblem is from a good bood called. Bunker or something.

@ylise9455 3 жыл бұрын

It is actually insane that you have made these accounting topics interesting. You just saved a grade (and a life :D ) thank you so much!!

@AccountingStuff 3 жыл бұрын

Best of luck in your studies!

@poljanbonpoligne7216 2 жыл бұрын

I swear you make everything my teacher teaches me sound easy and clear af. Thanks a lot!

@edward9180 Жыл бұрын

You are an absolute life saver! Totally better explanations and better examples than the textbook i have rn. So grateful that I found your channel.

@aphiwemdluli4414 Жыл бұрын

Currently clearing up the confusion in my head after learning this class. So helpful , thanks James!!

@deepikashree.v9678 11 ай бұрын

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.

@tinholly 2 жыл бұрын

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!

@savhadinamukwevho991 Жыл бұрын

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

@meggiegoes 4 жыл бұрын

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

@AccountingStuff 4 жыл бұрын

Perfect timing :) Good luck in your exam, hope you ace it!

@maddyh6109 3 жыл бұрын

Just bought all of your all in one cheat sheet bundle and I've never been happier doing accounting! Thank you so much!

@AccountingStuff 3 жыл бұрын

Thanks for your support, I appreciate it! It's great to hear that you're enjoying accounting :)

@joolzezumba121 3 жыл бұрын

Super cute! And clear and relatable explanations !! You rock!

@marieclaudettegarella2038 4 жыл бұрын

Just when needed my guardian angel is there😍

@gabrielchang3747 2 жыл бұрын

I wish I could've found this amazing channel earlier. Thank you for the great content and wish you a happy new year🎊

@srawberrim1368 Жыл бұрын

Thank you so much your videos are better than the three hour class revision on a weekend 🙏💗🥹

@jennyrosebasa1517 10 ай бұрын

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 😊😊😊

@evaggeliaktena1155 2 жыл бұрын

You are amazing! I thought that I would never understand (as a chemist) accounting!

@enricorossi6585 4 жыл бұрын

Best youtube channel ever. Thanks for your effort doing this incredible job! I truly love it

@AccountingStuff 4 жыл бұрын

Thanks Enrico!

@fabooshka 4 жыл бұрын

Haven't learnt this topic at school yet hope this knowledge comes in handy soon lol Can't stress how crucial your work on this channel is!

@AccountingStuff 4 жыл бұрын

I hope so too! All the best

@adriennejones2148 3 жыл бұрын

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 3 жыл бұрын

Hey Adrienne, thanks for your support! I appreciate it. All the best with your course, hope it's going well :)

@adriennejones2148 3 жыл бұрын

@@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

@AccountingStuff 3 жыл бұрын

@@adriennejones2148 Cheers for your request, I'll keep that topic in mind for future vids!

@sodethsun6149 2 жыл бұрын

thank you, James your video really help me to improve my career.

@dandisukmanugraha3745 3 жыл бұрын

I love the way you holding the squeegees in the entire video I love the way you explained each thing in detail

@AccountingStuff 3 жыл бұрын

Thanks, I'm glad you enjoyed it :)

@shantajones456 Жыл бұрын

Thank you for saving me, I almost dropped out HCS/380 until I found your video. Thanks a million!!!! times

@yumnawaseem272 4 жыл бұрын

Your videos are truly amazing. Honestly, I would’ve never passed accounting if it wasn’t for you. Have a good one ♥️🙏🏼

@AccountingStuff 4 жыл бұрын

Congrats on your pass Yumna! 🎉👏

@thespocker349 Жыл бұрын

you literally have a video for everything! thank you!!!

@AccountingStuff Жыл бұрын

You're welcome :)

@Xoxooxoxoxooxoxo 4 жыл бұрын

exceptional timing, this is on my test tomorrow. Thanks fort the great video!

@AccountingStuff 4 жыл бұрын

How did it go??

@Xoxooxoxoxooxoxo 4 жыл бұрын

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!!!

@AccountingStuff 4 жыл бұрын

@@Xoxooxoxoxooxoxo Nice one! Fingers crossed for a high score

@nhauyen1090 4 жыл бұрын

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.

@AccountingStuff 4 жыл бұрын

Great timing! Hope it's making sense

@asliddinlatipov2197 6 ай бұрын

I've watched many videos but i did not understand. After watching very that video, i felt how the topic was easy. Thank you man!😇

@AccountingStuff 6 ай бұрын

Great to hear it's making sense!

@humanhazard607 4 жыл бұрын

Keep going brother! You are doing a great work!

@AccountingStuff 4 жыл бұрын

Cheers!

@agneswu9612 3 жыл бұрын

Thank you so much James!!! After watching this video I've finally figured out how to use FIFO!!!!!! From Taiwan 🇹🇼

@AccountingStuff 3 жыл бұрын

Nice one! Glad to hear it's clicked

@Vivnnn106 3 жыл бұрын

omg I'm learning this too and it's so hard like I don't get the Taiwanese teachers lol

@PurpleLadyAphrodite 6 ай бұрын

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!

@AccountingStuff 6 ай бұрын

Great to hear you're finding these useful!

@christinaahn1887 3 жыл бұрын

Love the editing!! :)

@evansmukuka5501 4 жыл бұрын

Thank you James, I really value your work. Please make a video on Discount allowed and discount received.

@evansmukuka5501 4 жыл бұрын

And briefly explain the difference between two-column and three-column cash books. Thanks

@AccountingStuff 4 жыл бұрын

Hey Evans, thanks for your suggestions!

@Aman_R2 4 ай бұрын

This really helped, thank you.

@AccountingStuff 4 ай бұрын

You're welcome!

@Hizza1600 4 жыл бұрын

Thank you so much for these videos

@a.user9365 4 жыл бұрын

Good Job! Keep going bro!!!

@diyabhuse2998 2 жыл бұрын

Thank you so much :) your videos are amazing and easier to understand!

@AccountingStuff 2 жыл бұрын

Thanks, I'm glad you're finding them useful :)

@rasmitdevkota5295 4 жыл бұрын

studying for my state FBLA accounting test next week - got third in region, now aiming to win in state and go for nationals!

@AccountingStuff 4 жыл бұрын

Congrats!! Good luck in your test

@truclieutruong2662 4 жыл бұрын

Another day another fantastic work 🌟

@AccountingStuff 4 жыл бұрын

Thank you :)

@NamPhuongPhamThi Жыл бұрын

you just saved my life omg

@sohaibelabidi3440 3 жыл бұрын

Thank you man, your videos have helped me a lot.

@AccountingStuff 3 жыл бұрын

No problem, I'm happy to help :)

@CFS1997 6 ай бұрын

this makes my life so much easier, I can’t understand anything in the material they gave us.

@AccountingStuff 6 ай бұрын

That's great to hear!

@amytucker8335 4 жыл бұрын

Great Vid! Can’t wait for the next one.

@AccountingStuff 4 жыл бұрын

Thanks Amy!

@emmasheeran7922 4 жыл бұрын

you are saving my life thank you!!!

@AccountingStuff 4 жыл бұрын

No worries :)

@zaxlabittu9669 2 жыл бұрын

Thank you! It's the best!

@kamilraimov312 Ай бұрын

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!

@lukasgroebner7488 3 жыл бұрын

Very useful!!! Thanks a lot. From Italy😃

@AccountingStuff 3 жыл бұрын

Cheers Lukas!

@naomikibret7704 10 ай бұрын

Why is the window cleaning always the example 😂 you're the best man

@AccountingStuff 10 ай бұрын

It just worked out that way at the time

@onepes3703 4 жыл бұрын

Nice teacher, understandable video !

@AccountingStuff 4 жыл бұрын

Thanks!

@mathewsteven1035 4 жыл бұрын

Well Explained video!! Just Like it

@AccountingStuff 4 жыл бұрын

Cheers!

@levyshi4551 4 жыл бұрын

looking forward to talking about sales allowances and returns in next video !!!!!!!

@DocMaggie 2 жыл бұрын

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.

@AccountingStuff 2 жыл бұрын

Hope it helps!

@lenas1281 10 ай бұрын

James, you're so amazing! Do you do any private tutoring or do you have any paid-for series?

@isabelfonseca8803 4 жыл бұрын

hey, could you talk about the specific identification method as well? your videos are super helpful!

@AccountingStuff 4 жыл бұрын

Hey Isabel, thanks for your suggestion! I'd like to cover that soon

@danymathew7325 6 ай бұрын

watching your videos, make it redundant to read the confusing textbook we got from our university

@glamgirlsclub7605 4 жыл бұрын

Thank you for this..i was never taught in school but it came out in my exams

@AccountingStuff 4 жыл бұрын

Hope the explanation helped

@glamgirlsclub7605 4 жыл бұрын

@@AccountingStuff yes it did Thanks

@fahedalyafiy6215 Жыл бұрын

you are a legend ,, thank you

@AccountingStuff Жыл бұрын

Cheers Fahed!

@HOMEFOODMANIACS 4 жыл бұрын

Nice explanation James I want an accounting cycle problem I know it was in your list

@AccountingStuff 4 жыл бұрын

Thanks Munesh, I haven't forgotten! The Accounting Cycle is a beast and I want to do it justice

@eminamemic3753 4 жыл бұрын

You’re so cuteee! ☺️ You should show how to use those future value or present value of $1 tables. Still haven’t gotten that down

@AccountingStuff 4 жыл бұрын

Thanks Emina!

@canedr7883 3 жыл бұрын

thanks

@iceeeyy3557 4 жыл бұрын

Helpful as always

@AccountingStuff 4 жыл бұрын

Thanks!

@babthew 10 ай бұрын

I don't like learning inventory accounting but it seems so important.

@christinaahn1887 3 жыл бұрын

great video! :)

@julia5869pf 2 жыл бұрын

Thank you so much!

@AccountingStuff 2 жыл бұрын

No worries!

@hiphopnation8793 3 жыл бұрын

Hey, awesome informative videos as always. I am taking Financial Accounting and was wondering, do you ever tutor?

@AccountingStuff 3 жыл бұрын

Cheers! Unfortunately I don't do 1 to 1s

@sepidehahmadvand3510 4 жыл бұрын

Keep up the good work. Can you please make a video of budgeting?

@AccountingStuff 4 жыл бұрын

Cheers Sepideh, thanks for the suggestion!

@TOPChannel-vm3iw 4 жыл бұрын

from east africa somali good lecture👌✋

@AccountingStuff 4 жыл бұрын

Thanks mate!

@thomasnithin21 4 жыл бұрын

Ooh Wee, 5 more videos left in the marathon.

@Phobrobian 3 жыл бұрын

Thank you!

@AccountingStuff 3 жыл бұрын

You're welcome :)

@nimratsingh3583 4 жыл бұрын

Just osm bro.

@sapphireb8385 2 жыл бұрын

i just realised, 440 + 280 x 3 doesnt give you 840 but 2160. Im confused, am i missing something? @accounting stuff

@jasiaj5028 3 жыл бұрын

Thx! nice video:)

@AccountingStuff 3 жыл бұрын

No worries :)

@omaralamoudi3244 Жыл бұрын

Thanks!

@AccountingStuff Жыл бұрын

Thanks Omar! Very generous of you

@Talia778real 5 ай бұрын

Appreciate!😃

@AccountingStuff 4 ай бұрын

Thanks!

@annaperkins5818 Жыл бұрын

Since Quickbooks does a lot of these procedures automatically, do you have a video on where you would step in from there for reviewing and correcting?

@yaseengois4948 3 жыл бұрын

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?

@chemlasingh2928 4 жыл бұрын

Nice video .

@AccountingStuff 4 жыл бұрын

Thanks Chemla!

@dreee9700 4 жыл бұрын

thank you so much

@AccountingStuff 4 жыл бұрын

You're welcome :)

@Shinebayar-hv4pg 4 жыл бұрын

thank you bro

@AccountingStuff 4 жыл бұрын

You're welcome :)

@calebkemp581 4 жыл бұрын

You're a god

@jadecreelman8573 3 жыл бұрын

Saved my final

@AccountingStuff 3 жыл бұрын

Hope it went well!

@CarlosTorres-cd7sg 4 жыл бұрын

Lol your intro is always the same 😂😂😂 and I love how you say math ☺️

@abdirisakabdimahadahmed1536 4 жыл бұрын

Tomoraw is my exam wish me the best and i wish you the best thanks sir❤❤

@AccountingStuff 4 жыл бұрын

Hope you crush it!

@sundusowarsame7652 4 жыл бұрын

Heeey first thank you sooo much those videos helped me a lot I have question about it video I'm confused where 280 UNITS come from ?

@odalischavez7920 4 жыл бұрын

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).

@leestringer 2 жыл бұрын

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. :)

@clarisacabral378 4 жыл бұрын

Can you explain accounting in long term liabilities? Bond financing?

@AccountingStuff 4 жыл бұрын

Hey Clarisa, thanks for your suggestions!

@kristinecarreon1411 4 ай бұрын

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

@AccountingStuff 4 ай бұрын

That's great to hear :)

@blast2686 4 жыл бұрын

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

@marilynneparker181 3 жыл бұрын

Do you have any printables of the examples you do in the videos? I bought your cheat sheets but examples also help me understand.

@AccountingStuff 3 жыл бұрын

Thanks for your support! Unfortunately I don't at the moment, but that's a great idea

@amralsabban3533 Жыл бұрын

Thanks شكرا

@easymoneyhooper2974 2 жыл бұрын

the goat

@annesneha8583 3 жыл бұрын

HEYA can u do a video on correction of errors . that'll really help

@AccountingStuff 3 жыл бұрын

Thanks for your suggestion!

@PavanKumar-un7mn 3 жыл бұрын

Hi James please do class on Fixed Assests

@AccountingStuff 3 жыл бұрын

Hey Pavan, thanks for your suggestion!

@ReannaPeters12 4 жыл бұрын

We meet again! I have an assessment due Tuesday on FIFO, LIFO and AVCO! Help!!!

@AccountingStuff 4 жыл бұрын

Hope it goes well!

@ReannaPeters12 4 жыл бұрын

@@AccountingStuff it did thanks for all the help!!!

@mujtabaaliahsan8284 4 жыл бұрын

I hav my paper on 15th december. please make videos on LIFO and AFCO

@AccountingStuff 4 жыл бұрын

I'm working on them right now

@claudiaaquirogablanci5652 Жыл бұрын

what types of payments do accept for your cheat sheet

@DaiGua 3 жыл бұрын

What is the effect when using FIFO instead of LIFO/AVCO when prices rising?

@zamf 4 жыл бұрын

Hi James, nice video once again. I have one question. How do you keep track of the various units in your inventory? In you example, at the end of the month you sold all your $2 units and you only have $3 units. But what if at then end of the month you have $2 units and $3 units. Do you create an inventory account for each price group of units? Also, what happens if you first bought units for $2, then units for $3 and then again units for $2. I assume you don't merge the $2 unit groups in the FIFO case because you're working from old-to-new.

@AccountingStuff 4 жыл бұрын

Sure thing. This video was very theoretical. In reality a lot of businesses would use some kind of Accounting Software which can track all of the prices for you. However, if you were working it out for yourself then you might need to keep a separate spreadsheet to track the cost prices of your Inventory on hand. If you bought $2 units first then you'd sell those first, followed by the $3 units and then the $2 units. Always First In First Out. Hope that helps

@zamf 4 жыл бұрын

@@AccountingStuff It helps. Thanks :)

@BlitzSilvia 4 жыл бұрын

@@AccountingStuff what is the best accounting software for this? I need to keep track of inventory and cost of goods, which constantly change because our products are constantly on promotions, cost prices change month by month.