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
@naterealestateAR4 жыл бұрын
These video have taught me far more about accounting in far less time than my college courses. Much appreciated!! fantastic content
@AccountingStuff4 жыл бұрын
Glad to hear the vids are helping. All the best!
@user-ox8jq9nu3z11 ай бұрын
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!
@jonfcbayern4 жыл бұрын
Had my Accounting final a few hours ago. Just want to thank you James for all your videos! Exam went really well!! you're an absolute legend mate
@AccountingStuff4 жыл бұрын
Congrats Jon! Must be a weight off your chest getting through it. All the best
@vasilispap92343 жыл бұрын
i learnt everything about Inventory in less than an hour while my teacher couldn't do even half of it in 3 sessions. YOU ARE A GOD
@AccountingStuff3 жыл бұрын
Hope it's making sense :)
@bajoobiecuzican4 жыл бұрын
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!!!!
@AccountingStuff4 жыл бұрын
Good luck! I hope it works out well for you
@melindag1113 күн бұрын
What was your degree in
@usmanalyas4214 жыл бұрын
Love You Brother For these efforts you made for us. Really Appreciate That. Love From Pakistan 🌺🌺
@AccountingStuff4 жыл бұрын
Cheers Usman, it's a pleasure. Love from Canada!
@Jack_Dab Жыл бұрын
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!
@workacc52704 жыл бұрын
I first encountered your Channel when you had 500 subs ! And now look at that! Soon surpassing 50k. Congrats ur crushing it
@AccountingStuff4 жыл бұрын
Hey there, thanks for dropping in again! Yeah things have been moving quicker lately. Cheers for the support
@kenyamaywatson75173 жыл бұрын
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:)
@AccountingStuff3 жыл бұрын
Great to hear it's making sense! All the best :)
@Arkan-102 ай бұрын
THANK YOU THANK YOU THANK YOU! I was so confused as to what ‘last inventory’ and ‘first inventory’ meant, thanks again!
@AccountingStuff2 ай бұрын
You're very welcome, great to hear it's making sense :)
@luisalonzo61353 жыл бұрын
dude please do not stop making videos, all the info you give is very useful for reinforcing what im seeing in my classes.
@AccountingStuff3 жыл бұрын
Cheers Luis, I plan to make many more :)
@deepikashree.v9678 Жыл бұрын
This really helps me for studying accounting in my undergrad. Your videos are a life saver!!!
@phuchaonguyenluu9862 жыл бұрын
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 ...
@AccountingStuff2 жыл бұрын
No problem, great to hear you're finding these useful!
@ilkinmusayev29064 жыл бұрын
one of the best explanations of FIFO i have ever seen
@AccountingStuff4 жыл бұрын
Thanks Ilkin!
@stephenfraiku83484 жыл бұрын
Am happy to discover this because I didn't do Cost Accounting but you have made it easy for me to understand.
@emilypettigrew77714 жыл бұрын
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.
@AccountingStuff4 жыл бұрын
No worries Emily, great to hear it's making sense
@ilayda90674 жыл бұрын
Very clear and helpful video as always but I wish the example was different to solve as an exercise- not only to understand the topic. Thanks!
@AccountingStuff4 жыл бұрын
Thanks for your feedback, I'll bear that in mind for future vids
@ccannon57842 жыл бұрын
Thank you so much! Your videos are always well put together and helpful.
@melekdschejchan43354 жыл бұрын
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!
@AccountingStuff4 жыл бұрын
Cheers Melek, great to hear that you've rediscovered the motivation to study. Good luck in your exam, I hope it goes well!
@dinkfam06824 жыл бұрын
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!
@AccountingStuff4 жыл бұрын
Thanks for your suggestion!
@cansuthaliaorkun80534 жыл бұрын
Really looking forward for AVCO video, LIFO and FIFO was great!!
@AccountingStuff4 жыл бұрын
Cheers Cansu, the AVCO vid is now live
@laurenewaaeeaqwreilly45143 жыл бұрын
Thank you so much honestly you make it easy to understand
@AccountingStuff3 жыл бұрын
Cheers, that's great to hear!
@ay78363 жыл бұрын
keep going brother . u do better than my lect .
@AccountingStuff3 жыл бұрын
Thanks, will do!
@DonasTheArtist3 жыл бұрын
This mini-series is excellent
@AccountingStuff3 жыл бұрын
Thanks Georgie!
@gaspardetienne4874 жыл бұрын
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 ;)
@AccountingStuff4 жыл бұрын
Hey Gaspard, good luck in your exam!! Cheers for the suggestion
@sinem38664 жыл бұрын
Yass, my final is in next month but I really do like your videos so I'm watching it now. Thank you for great videos ^-^ .
@AccountingStuff4 жыл бұрын
Ouch, so you'll have to revise over the Christmas holidays!
@danymathew73259 ай бұрын
greetings from Maastricht, Netherlands
@thetechrealms78244 жыл бұрын
I just checked online... GAAP allows LIFO. Neat.
@briannahenry60384 жыл бұрын
Thank you for sharing, please continue to upload. Superb content 👌
@AccountingStuff4 жыл бұрын
Thanks Brianna! There's plenty more to come
@laurenzruiz4 жыл бұрын
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!
@AccountingStuff4 жыл бұрын
Great suggestions - cheers Steve!
@jackieyap75634 жыл бұрын
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
@AccountingStuff4 жыл бұрын
Hey Jackie, thanks for your suggestions! I'll keep those topics in mind for the future
@Murtaza_Mohammadi5 ай бұрын
I really appreciate you 🙏 you are perfect
@AccountingStuff5 ай бұрын
Thanks for your kind words :)
@nu_xx55442 жыл бұрын
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.
@vads82653 жыл бұрын
Still can't get how could someone dislike this
@kanzashamim35733 жыл бұрын
You are awesome 👏🏽
@AccountingStuff3 жыл бұрын
Thanks Kanza!
@sabrinabueno6654 жыл бұрын
woww Fantastic content, im seeying all your videos
@AccountingStuff4 жыл бұрын
Thanks Sabrina, glad you enjoyed it!
@michaelhale78024 жыл бұрын
Great tutorial, thanks for sharing
@AccountingStuff4 жыл бұрын
Cheers Michael!
@AzaFayz4 жыл бұрын
Thanks for your work) Please, make a video about calculating operating, investing and financing activities)
@AccountingStuff4 жыл бұрын
Hey do you mean Cash Flow Statements? I've got a playlist on them here... kzbin.info/aero/PL5zKSeS09l314wQmOtPEIaYnCGlLPUNIh
@daphne42293 жыл бұрын
Do you know how incredible you are? I second the comment that you are a god!
@AccountingStuff3 жыл бұрын
Thanks for your kind words :)
@Talia778real Жыл бұрын
Got it,ty.😀
@beingmybestversion3 жыл бұрын
The handsome accounting man ;)
@beingmybestversion3 жыл бұрын
Not only handsome, but also funny and clever (:
@christinaahn18873 жыл бұрын
I love the squeegees example. So fun saying it. lolll
@karinaortega92074 жыл бұрын
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 🤔🤔🤔
@bajoobiecuzican4 жыл бұрын
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
@karinaortega92074 жыл бұрын
@@bajoobiecuzican thank you for your reply this is where I get confused I appreciate it 😉
@elifnisaguler60964 жыл бұрын
You're so good, i love u so much :) thanx for lecture
@AccountingStuff4 жыл бұрын
Cheers Elif, glad your enjoying the vids!
4 жыл бұрын
Great💥
@AccountingStuff4 жыл бұрын
Thanks Amal :)
@nadeenmei89064 жыл бұрын
Great video! Is it possible you will make some videos for Cost Accounting Analysis?
@AccountingStuff4 жыл бұрын
Cheers for your suggestion!
@qahanis4 жыл бұрын
it helps me a lottt a lottt thank you!! i hope u will do a video on tangible non current assets eg depreciation and all that. thank you in advance :)
@AccountingStuff4 жыл бұрын
Thanks, I plan to cover depreciation fairly soon
@evafacila17194 жыл бұрын
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 💜
@APT9514 жыл бұрын
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.
@APT9514 жыл бұрын
PS. My eventual goal is to be a CFO but I don’t know if moving to audit will take me off track.
@AccountingStuff4 жыл бұрын
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
@FrostedPoro4 жыл бұрын
thank u
@nicolecarson90672 жыл бұрын
Is lifo used in periodic or perpetual method or can it be used in both
@lucasolarreaga25704 жыл бұрын
I love this man #NoHomo
@AccountingStuff4 жыл бұрын
Haha cheers Lucas!
@samuelgoodluck80524 жыл бұрын
Please can you make a video of final account of a sole trader... less I forget thanks a lot for your #lectures... I really appreciate 👍
@AccountingStuff4 жыл бұрын
Thanks for your suggestion!
@samuelgoodluck80524 жыл бұрын
@@AccountingStuff anytime 👍
@SuperKevin64644 жыл бұрын
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?
@mujahidahmed84 жыл бұрын
James please explain the difference between AVCo and weighted average cost in your videos
@AccountingStuff4 жыл бұрын
Hey Mujahid, the Weighted Average Cost Method (WAVCO) and the Average Cost Method (AVCO) are the same thing. We'll cover it in the next video
@narmeenomer53133 жыл бұрын
But what if we have more than three purchases ? Which should we choose
@blast26864 жыл бұрын
Why is LIFO not allowed by the IFRS?
@lemmen74204 жыл бұрын
Hey James Great video ! thank you i learned a lot
@AccountingStuff4 жыл бұрын
Great suggestion!
@rohinisakure44534 жыл бұрын
Ledgend says its impossible to get heart😍 from JAMES BY THE WAY GOOD VIDEO AND YOU GOT A FRESH SUB YESTERDAY ONLY
@AccountingStuff4 жыл бұрын
Cheers Rohini, it's great to have you on board :)
@mohibqureshi3913 жыл бұрын
In rising trends of prices, the LIFO method of cost flow assumption leads to higher cost of goods sold...WHY?
@mohibqureshi3913 жыл бұрын
Question 2: the lesser COGS yields mor gross profit and gross profit margin and eventually it result in HIGHER net income ...WHY?
@grantdraper774 жыл бұрын
It would be helpful to put a rug or sound sheets in your studio to make for cleaner audio
@AccountingStuff4 жыл бұрын
Thanks for your suggestion Grant :)
@AkshayKumar-yn3lj4 жыл бұрын
You could also make videos on accounting frauds and mistake. Like show the other side of the world and how it is misused or manipulated.
@AccountingStuff4 жыл бұрын
Hey Akshay, that would be a really interesting series. Thanks for your suggestion!
@AkshayKumar-yn3lj4 жыл бұрын
@@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.
@AccountingStuff4 жыл бұрын
@@AkshayKumar-yn3lj Yeah good call. Have you watched the documentary "Smartest Guys in the Room"? So interesting!
@alanmoskovic1722 жыл бұрын
LIFO as a valuation model is also not allowed under ASPE.
@mujahidahmed84 жыл бұрын
What is the difference between AVCo And weighted average cost
@AccountingStuff4 жыл бұрын
None at all, they are the same method
@katherinemartinez8393 жыл бұрын
how did he get 100 times 2 dollars per unit?
@helenayui75223 жыл бұрын
Where did 2,750 revenue came from? I am confuse. Anyone help
@totallyadorkable34253 жыл бұрын
The $2,750 revenue came from the November 12th transaction of selling 500 squeegees.
@meenanarasimman63674 жыл бұрын
Thala gethu thala
@shanoo24674 жыл бұрын
PLZ UPLOAD THE AVCO VID MY EXAM IS TMRW!!!!
@AccountingStuff4 жыл бұрын
Hey! Unfortunately it won't be up until next week. Good luck! Hope you ace it
@fardeenshamsab42543 жыл бұрын
👍
@AccountingStuff3 жыл бұрын
Thanks buddy :)
@Heresheis08189 ай бұрын
8:36
@AC_Blanco4 жыл бұрын
Don't use LIFO if you're required to fill under IASB.
@AccountingStuff4 жыл бұрын
Very true
@Swimming-30004 жыл бұрын
but... if this method is forbidden by the IFRS... why does some people uses it?
@AccountingStuff4 жыл бұрын
Because not everyone has to follow IFRS, and LIFO brings with it some potential tax advantages
@abdirisakabdimahadahmed15364 жыл бұрын
Sir your revenue is 2750 how it happen explain me thanks teacher
@AccountingStuff4 жыл бұрын
Hey Tabinta, sure thing! You sold 500 units for $5.50 each. 500 x $5.50 = $2,750
@abdirisakabdimahadahmed15364 жыл бұрын
@@AccountingStuff i understood thanks sir
@abdirisakabdimahadahmed15364 жыл бұрын
@@AccountingStuff and my exam went well 💪💪 you are the best teacher 💪💪❤❤ love from somalia🇸🇴🇸🇴
@AccountingStuff4 жыл бұрын
@@abdirisakabdimahadahmed1536 Nice one, glad to hear it went well!!
@andrewchang11464 жыл бұрын
Dude you sound like the guy from the true crime podcast
@AccountingStuff4 жыл бұрын
Haha, that's a first!
@andrewchang11464 жыл бұрын
Accounting Stuff open.spotify.com/episode/7i89EGSDPsuSj5TWCPI4EM?si=h1h2P-EVThODCzOxBKsTxw same person
@salis59412 жыл бұрын
So hard
@AccountingStuff2 жыл бұрын
You've got this!
@Youtube_ban_me3 жыл бұрын
Em I the only one who dont like brit accents when watching informative youtube vids? shit makes me mad lol