First In First Out (FIFO) | Inventory Cost Flows

[@AccountingStuff]

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]

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

[@AccountingStuff]

@@abdirisakabdimahadahmed1536 Let me know how it goes

[@abdirisakabdimahadahmed1536]

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

[@alimoha9431]

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

[@adepejuoyinadeadebola1240]

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

[@muhanedyousif7847]

I passed my mid term exam in accounting. I didn’t grasp the inventory costing concepts until I watched your videos. Cheers mate.

[@AccountingStuff]

Congrats! That's great to hear :)

[@ylise9455]

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]

Best of luck in your studies!

[@poljanbonpoligne7216]

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

[@apocailypse3766]

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

[@anunentitledmotivatedmille7731]

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

[@MinuteDocumentaries]

Grades don’t matter but rather if you can apply the concepts in the workplce

[@maddyh6109]

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

[@AccountingStuff]

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

[@savhadinamukwevho991]

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]

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]

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

[@aphiwemdluli4414]

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

[@edward9180]

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.

[@marieclaudettegarella2038]

Just when needed my guardian angel is there😍

[@deepikashree.v9678]

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]

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!

[@adriennejones2148]

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]

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

[@adriennejones2148]

@@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]

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

[@yumnawaseem272]

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

[@AccountingStuff]

Congrats on your pass Yumna! 🎉👏

[@shantajones456]

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

[@agneswu9612]

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

[@AccountingStuff]

Nice one! Glad to hear it's clicked

[@Vivnnn106]

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

[@dandisukmanugraha3745]

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

[@AccountingStuff]

Thanks, I'm glad you enjoyed it :)

[@PurpleLadyAphrodite]

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]

Great to hear you're finding these useful!

[@srawberrim1368]

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

[@rasmitdevkota5295]

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

[@AccountingStuff]

Congrats!! Good luck in your test

[@joolzezumba121]

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

[@asliddinlatipov2197]

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]

Great to hear it's making sense!

[@jennyrosebasa1517]

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 😊😊😊

[@CFS1997]

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

[@AccountingStuff]

That's great to hear!

[@minionhippo]

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]

Great timing! Hope it's making sense

[@fabooshka]

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]

I hope so too! All the best

[@thespocker349]

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

[@AccountingStuff]

You're welcome :)

[@kamilraimov312]

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!

[@DocMaggie]

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]

Hope it helps!

[@evansmukuka5501]

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

[@evansmukuka5501]

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

[@AccountingStuff]

Hey Evans, thanks for your suggestions!

[@sodethsun6149]

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

[@Xoxooxoxoxooxoxo]

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

[@AccountingStuff]

How did it go??

[@Xoxooxoxoxooxoxo]

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]

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

[@gabrielchang3747]

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

[@NamPhuongPhamThi]

you just saved my life omg

[@eminamemic3753]

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]

Thanks Emina!

[@canedr7883]

thanks

[@evaggeliaktena1155]

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

[@enricorossi6585]

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

[@AccountingStuff]

Thanks Enrico!

[@lukasgroebner7488]

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

[@AccountingStuff]

Cheers Lukas!

[@Aman_R2]

This really helped, thank you.

[@AccountingStuff]

You're welcome!

[@naomikibret7704]

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

[@AccountingStuff]

It just worked out that way at the time

[@danymathew7325]

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

[@christinaahn1887]

Love the editing!! :)

[@a.user9365]

Good Job! Keep going bro!!!

[@babthew]

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

[@truclieutruong2662]

Another day another fantastic work 🌟

[@AccountingStuff]

Thank you :)

[@humanhazard607]

Keep going brother! You are doing a great work!

[@AccountingStuff]

Cheers!

[@mswfamu]

Thank you! You made this make sense!

[@AccountingStuff]

You're very welcome :)

[@sohaibelabidi3440]

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

[@AccountingStuff]

No problem, I'm happy to help :)

[@TOPChannel-vm3iw]

from east africa somali good lecture👌✋

[@AccountingStuff]

Thanks mate!

[@sapphireb8385]

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

[@diyabhuse2998]

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

[@AccountingStuff]

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

[@emmasheeran7922]

you are saving my life thank you!!!

[@AccountingStuff]

No worries :)

[@leestringer]

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. :)

[@isabelfonseca8803]

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

[@AccountingStuff]

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

[@fahedalyafiy6215]

you are a legend ,, thank you

[@AccountingStuff]

Cheers Fahed!

[@zaxlabittu9669]

Thank you! It's the best!

[@lenas1281]

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

[@Hizza1600]

Thank you so much for these videos

[@amytucker8335]

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

[@AccountingStuff]

Thanks Amy!

[@onepes3703]

Nice teacher, understandable video !

[@AccountingStuff]

Thanks!

[@mathewsteven1035]

Well Explained video!! Just Like it

[@AccountingStuff]

Cheers!

[@thomasnithin21]

Ooh Wee, 5 more videos left in the marathon.

[@yaseengois4948]

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?

[@hiphopnation8793]

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

[@AccountingStuff]

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

[@sundusowarsame7652]

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]

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).

[@iceeeyy3557]

Helpful as always

[@AccountingStuff]

Thanks!

[@glamgirlsclub7605]

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

[@AccountingStuff]

Hope the explanation helped

[@glamgirlsclub7605]

@@AccountingStuff yes it did Thanks

[@levyshi4551]

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

[@annaperkins5818]

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?

[@kristinecarreon1411]

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]

That's great to hear :)

[@Rimshaaa.A]

How did you get 280??? Can someone please explain

[@subahzareenkhanam7125]

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*?

[@clarisacabral378]

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

[@AccountingStuff]

Hey Clarisa, thanks for your suggestions!

[@worabaabban5155]

you just had a subscriber

[@AccountingStuff]

Great to have you on board!

[@abdirisakabdimahadahmed1536]

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

[@AccountingStuff]

Hope you crush it!

[@sepidehahmadvand3510]

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

[@AccountingStuff]

Cheers Sepideh, thanks for the suggestion!

[@OkKapoor]

What's about doing FIFO in periodic inventory system? 😊

[@easymoneyhooper2974]

the goat

[@CarlosTorres-cd7sg]

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

[@calebkemp581]

You're a god

[@blast2686]

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

[@HOMEFOODMANIACS]

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

[@AccountingStuff]

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

[@jadecreelman8573]

Saved my final

[@AccountingStuff]

Hope it went well!

[@DaiGua]

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

[@christinaahn1887]

great video! :)

[@chemlasingh2928]

Nice video .

[@AccountingStuff]

Thanks Chemla!

[@muhanedyousif7847]

Thanks

[@AccountingStuff]

You're very welcome :)

[@julia5869pf]

Thank you so much!

[@AccountingStuff]

No worries!

[@Parkour98321]

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]

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

[@claudiaaquirogablanci5652]

what types of payments do accept for your cheat sheet

[@Phobrobian]

Thank you!

[@AccountingStuff]

You're welcome :)

[@nimratsingh3583]

Just osm bro.

[@omaralamoudi3244]

Thanks!

[@AccountingStuff]

Thanks Omar! Very generous of you

[@PavanKumar-un7mn]

Hi James please do class on Fixed Assests

[@AccountingStuff]

Hey Pavan, thanks for your suggestion!

[@jasiaj5028]

Thx! nice video:)

[@AccountingStuff]

No worries :)

[@danlabrador]

What do we do when there are purchase/sales returns?

[@aliciiahodge2499]

how would i process a returned item to inventory with FIFO on the inventory table?

[@mujtabaaliahsan8284]

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

[@AccountingStuff]

I'm working on them right now

[@Shinebayar-hv4pg]

thank you bro

[@AccountingStuff]

You're welcome :)