FIFO Inventory Method

This video explains how to compute cost of goods sold and ending inventory using the FIFO (first in, first out) inventory cost assumption. An example is provided to illustrate how FIFO is used to calculate COGS and inventory.
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[@JodiTryHard]

this just explained Fifo better than my textbook/professor

[@Edspira]

Thanks Joseph!

[@angelmaebasan5199]

damn yes

[@jna4ever2010]

mannnnnn This is so real.. .... My professor literally taught me absolutely nothing.

[@SublimeGemini]

You explained this better in 8 minutes than my professor did in an hour, thank you so much!

[@BonsterBar]

For real

[@beatriceogbebor9263]

This crack me up

[@rootsAlkebu]

😂

[@Dikwena_Gwijo]

bro. I dont get why. I never used to know the Fifo method because of my accounting teacher. This man saved my life.

[@seenamba]

Sir, Your videos are simply clear and easy to understand. you are an amazing teacher. Thank you Sir.

[@Edspira]

Thank you for the kind words Srinivas! Best wishes to you and your family :)

[@seenamba]

Thanks Sir :-) You are simply superb. Wishing you and your family a very Happy New Year ahead..

[@kimburton1697]

Completely agree! These videos have helped in my managerial accounting class so much!!!

[@Toph.Beifong.]

@@Edspira I was pulling my hair out along with half the class trying to understand this in class and you explained it so clearly in minimal time it clicked in my head instantly. Wow, Thank you very much sir!

[@classix568]

@@Toph.Beifong. u do realize ur replying to a 2 year old comment right ?...i know i know it's ironic for me to say it

[@noorspall419]

I’ve been trying to figure all this out for the past 2 hours (literally). Lots of crying. You literally explained it SO well. Thank you!

[@Edspira]

No problem! Glad to hear you got it figured out!

[@startrooper2345]

awwww crying

[@nicolejames2795]

I just love how much this helped me with my accounting homework and exam when my college has turned to all online due to covid19 thank you!!!

[@a-zee1636]

big facts

[@rnmiigqa6614]

swear saved my life

[@ejazaslam5847]

College and COVID just make you lazy af and class just doesn’t make sense, this however is a lifesaver

[@littlebee33]

yeah me too! so helpful!

[@Strein86]

Couldn't agree more! Both to the clarity of these videos and devastating increase in laziness with everything online.

[@marcusswain6912]

I've learned more from this one video than I did in a whole semester

[@Edspira]

Is it wrong that I laughed at this comment? It's definitely sad that you didn't learn much during your semester...I just found this amusing. Thanks for watching!

[@Dikwena_Gwijo]

bro same. This comment is from 6 years ago. I wonder where you are now. hehe

[@MichxelBrxndo]

Thank you sir. I was actually struggling with FIFO and LIFO in my financial accounting class. You explained it perfectly. I now understand.

[@Edspira]

Great! Best of luck to you in your studies.

[@ejazaslam5847]

You make this sound so much easier than my lecturer overcomplicating this and me feeling confused and lost, thank you so much, you’ve saved my life

[@Rizz9712]

I wish I had you as a professor everything you teach makes clear sense

[@Edspira]

Awesome. I'm happy to help!

[@straightneal]

Thank god you posted this video! I've been cramming for finals and this is absolutely the best reference I could find for a step by step analysis of how to calculate the necessary accounts using fifo and lifo. Thank you for spreading your knowledge!!

[@JoshKrier]

My friend, I have to say I have dug though a ton of KZbin videos regarding the FIFO Inventory Method and never have I ever been able to fully understand how this works watching the video just one time. You've been able to display this information in such a way that I only needed to watch it one time! So with that being said, thank you good sir! Keep doing what your doing! Wonderful Wonderful Wonderful Job!!!

[@Waters652]

Thank you for this video. My teacher just threw in numbers and started calculating. You gave very clear directions and a great example. Thank you so much for this! I finally understand it :D

[@Angelskris333]

This was great! According to the example in my online course, we started with ending inventory.The explanation was difficult to understand. After watching this It made sense and i figured out the correct answers. Thank you!!

[@millieburnett4241]

I had to leave a comment but omg this has saved me!! For the past two weeks on my studies I've been doing elements of costing and now I'm on the inventory topic which I think with a proper understanding it is rather simple if you know! But this just made it soo simple to understand and actually shows how you get every number! Thank youu 🙏

[@jessicachavarria98]

BLESS IT TOOK ME AN HR TO ACTUALLY FIND YOUR VID AND HELP ME UNDERSTAND MY ACCOUNTING HOMEWORK

[@Edspira]

I'm glad this video was helpful. Best of luck to you in your studies!

[@jacobhernandez4347]

THANK YOU. Im taking my accounting classes online so a lot of reading and videos, this video is straight to the point and very clear. awesome work

[@hrithikroshan9755]

Thank you so much!! I was struggling with accounting but i think i can get a high score in the exam thanks to you!

[@Edspira]

It's my pleasure! I'm glad you found the videos useful. I hope you do great on your exam!!

[@anonymouzsmash4241]

@@Edspira sir can you do gross sales what if expenses is bigger than sales for a small businesa

[@karari6069]

Lol I have an exam tomorrow🥱🥱

[@FrostyCLPZ101]

Thank you just watched average cost ,lifo, and now this one fifo and it makes so much more sense. Literally took 10 min to learn.

[@merissascheier1248]

Oh my god, thank you so much for this, this helped me immensely! I was stuck on a FIFO problem for at least an hour, nothing was helping me until I found this. Thank you!!

[@amberlythomas1115]

Thank you so much for posting this, this is saving me right before a test after feeling helpless from not understanding the book or lecture. 🌻

[@christinag808]

This was BEYOND helpful. I wish all professors taught this way.

[@darrellmackinnon1667]

Right on the money, extremely fluent to follow' even 5 years later. Thank you!

[@PucaDuca13]

Your voice is unbelievably relaxing!

[@kritishasankla2190]

Thank you so much! Really loved that you explained the concept thoroughly and super simple to understand!

[@noellea616]

thank you, the visualization as you talk is so helpful

[@bunnyboo486]

Oh my gosh Thank you so much!!! I was struggling with this so much, but this video made everything perferctly clear!

[@TraeKing13]

Same!

[@saibijaychhetri4081]

THANK YOU SO MUCH SIR.....i always watch your video whenever i do not understand from books.....you explain so easily...

[@tristanbland1844]

This is the best explanation out there! Extremely helpful and well done! This is how accounting should be explained. However, please specify that this is the PERIODIC system and maybe post a video on how to do the perpetual system for these methods as well? Thank you so much!

[@kaboose07]

You are way better than any of my professors! I’ve learned more from you in an 8 minute video than over the entire semester.

[@Edspira]

That's very kind of you. Thanks!

[@amandamartinez6115]

Agreed! Your a lifesaver I was so confused reading from my textbook! Thank you. Going to check your videos for Weighted Average.

[@AceYoutuber77]

Thank you so much! I was not able to grasp this concept until this video.

[@ImadeIyamu]

You really explained this so well. I’m very grateful to you!

[@jambo8811664]

Couldn't be more thankful for this explanation currently. Love this.

[@Edspira]

Glad you liked it!

[@shantanagarkoti4893]

this is very helpful. I could not understand in the class, but after I watched this video, I understood everything. Thank you so much.

[@jna4ever2010]

WE need more teachers like you! Thank you!!!

[@chiefkeef8850]

Thank you for this, extremely helpful. I wish teachers recommended more videos like this instead of reciting the textbook.

[@SumShar11]

Wow! What a clear and concise explanation. Amazing work!

[@NatE1]

I'm doing marketing and this has helped me understand FAR better than any textbooks or teachers.

[@Edspira]

Happy to hear that my friend!

[@madnessart5943]

Searched for the video in order to understand it 3 days ago you did it better than my own doctor

[@SidSwagTV]

Did a fantastic job explaining, I did not understand at all when my professor went over this during class. But, now my i understand it so well

[@MrJk360]

Thank you so much, I was really struggling with this and your video made everything clear.

[@ma3ixul997]

OMG a life saver ❤❤ , I was going around about fifo method explanation and I saw your video , so simple and clear . My teacher was in a rush with explanation 😂 I couldn’t even get it but your video helped me and I have acca FA exam this coming Tuesday wish me a luck to pass the 50% . Thank you so much

[@francescapetrullo4449]

Thank you for this video!!! So clear to understand with a realistic example!

[@wtfnga96]

thank you! explained it much better and it was much easier to follow than my accounting teacher

[@mohammedal-ahmadi8045]

I like the way of how you facilitate this complicate case in finance class.

[@eaae]

In this video I explain FIFO, LIFO and average cost methods to value the stocks stored by a company, to estimate the cost of goods sold and to determine the commercial result (profit or loss) of the firm: kzbin.info/www/bejne/o4CwYn-npt6XpdU.

[@Zentabes]

Even as a spanish speaker, I could understood 100% what you were explaining. Thank you so much! Very clear

[@amgkv2.025]

Thank you sir, you did what my professor, study module, and text book couldn't do.

[@rohangurung6963]

Damn this video is so easy to understand. Thank you very much to upload this. I'll share in my community

[@yaelri1430]

my oh my -i wish you my teacher !! you explain very very well and clearly like unto a child...many thanks

[@snowtiger7370]

Thanks! I was struggling with this for hours until you said something that made it click.

[@Edspira]

I'm so happy to hear that! Isn't it a great feeling when you put in all that hard work and it finally clicks? I love it!

[@mel8236]

almost cried because i didnt understand my accounting homework. but this helped immensely. thank you sir.

[@Tvd563]

THANK YOU SO MUCH FOR EXPLAINING THIS SO CLEARLY

[@hollyc4302]

Lifesaver videos! These explanations are so clear!

[@qwerty123456789abcde]

The best explanation I've found

[@mohmmadasim1922]

Very nice 👍 ,short and easy to understand. keep up the work

[@erriskapramitha8022]

omg amazing explanation! and this lecture is free. well thank you so much for this amazing content

[@LuisGonzalez-fk3jl]

Thanks for making it easy to understand! great video

[@lovelychitti2906]

xplained very well sir.....no such vedio I've searched till now xplained me this much clearly....so helpful...👌🏿👌🏿

[@stephanieniap7542]

ALL your videos have helped me pass my exams over the years. Thank you so much!

[@Edspira]

Awesome. Keep up the good work!

[@darylsmith9318]

Wow so simple, thanks a ton. Explained it so much better than my professor.

[@ryanalexander2855]

saving my life on my accounting exams thanks!

[@Edspira]

My pleasure. I hope you do great in your course!

[@juliusb8242]

Great video, very good and easy to understand explanation.

[@mizaelfigueroa1431]

Thank you so much, was trying to understand this all class. Your video was so clear and helpful

[@Edspira]

I'm glad you found this video to be useful. Best of luck to you in your class!

[@delsincrane3837]

Thanks for making this simple! Could not understand this from my teacher’s powerpoints!

[@kubratsalaam1555]

Thank you! This video is clear and extremely helpful.

[@summerspade5139]

really helped me understand the concept.thanks for the help sir.keep up the good work.

[@Edspira]

Glad you found it helpful!

[@daniellecrawford8288]

I was so confused, you explained this in less time then my professor.

[@kihoonyi5190]

Finally. After 4 attempts of taking this course, I understand fifo.

[@Edspira]

+Merve Merve Regarding the difference between period and perpetual FIFO: with FIFO, the end result is the same whether you use the periodic or perpetual method (the journal entries are slightly different, however, because you use a "Purchases" account with the periodic method and don't actually update the inventory account until the end of the period). With LIFO, however, the end result for inventory could be different based on whether you used periodic or perpetual. In times of rising prices, perpetual LIFO will result in lower cost of goods sold (and therefore higher net income) than periodic LIFO. This is because with the periodic method you wait until the end of the period to update the inventory account, and if prices have been rising then the most recent purchase will be the highest per unit price (which increases cost of goods sold more). Hope this helps!

[@laylaglobal80]

could you just write the formula for finding FIFO here??

[@justfunjustfun7234]

Edspira please speak Hindi

[@mahiulsohan]

Thank you very much! This video saved me from getting bad grades in my midterm. :) Very easily explained.

[@Edspira]

Mahiul Islam Sohan Thank you, and congratulations on doing well on your midterm!

[@deryaalacan4923]

Thank you so much sir! I understood everything you explained.

[@fehairandmakeup]

Thank you! Videos are better than just reading how to do it. It's confusing since we're modular 😁

[@lakrishaciendy8615]

Sir, you're an amazing teacher. Thank you!!!!!!

[@ranaarar1776]

thank u.. from the very bottom of my heart i wanna say thank you sir. keeping going

[@littlebee33]

THANK YOU SO MUCH!! This video helped me understand my homework!! 👏👏👏

[@tshedzamakuya5839]

Love from South Africa thanks for the help, better explained than the textbook.

[@Edspira]

Thank you for the encouragement my friend!

[@chantalulrich2843]

i have my exam in accounting tomorrow and this dude is saving my ass ! based on his calculation and explanation i was able to figure out the solution for a pretty hard mock exam. wish i found him sooner. Instantly subscribed

[@Edspira]

Good luck, I hope you ace the exam!

[@lucaschang3571]

Thanks for the videos. They help me a lot

[@raynettegibson5841]

You made this much more easier for me. Thank you sooooo much

[@kari500]

I want to thank you so much for this video. I'm not majoring in accounting, but it's required. I spent hours going over this in my online textbook, and it would not explain where the numbers are coming from, which is why I couldn't understand, so then I started laughing and crying at the same time for a few minutes xD Thank you, just thank you :)

[@Muttz97]

You teach way better than my professor. Million thanks

[@Edspira]

Happy to help!

[@Ellenn971]

This was explained so well and very clearly. Thank you so much!

[@Edspira]

You're welcome. Thanks for watching Ellenn971!

[@MyFinancialFocus]

FIFO and lifo, my favorite inventory concepts :)

[@KensteLord]

Great video, I'm exam ready now!

[@KaiserX]

Great video, very clear, concise and helpful. Wish me luck on my test! ;)

[@jamiemerry4258]

Thank you so much, you teach this very well and clear to understand! :)

[@Edspira]

You're very welcome!

[@Levsonn]

Great job, perfect explanation!

[@markknapp3714]

Thanks for the help, I understand FIFO SO much better now!

[@Edspira]

Excellent!

[@DHworldwide185]

THANK YOU, finally a video that speaks plain english. Thought I was going to fail.

[@bre9796]

i was struggling with this topic! thank YOU!!!!!

[@Edspira]

Glad to help!

[@williesantanajr]

Thank you for your excellent explanation I really appreciate it . oh yeah subscribed Michaels page as powerful learning material . thanks again !!!

[@Edspira]

Thank you for the kind words my friend!

[@tiavinarabetokotany5973]

i have my accounting final exam tomorrow! this helps me more than my teacher!

[@user-nv6ih7ym6w]

thank you QAQ my college entrance exams are around the corner and this really helped me understand what my teacher was tryin to teach

[@Edspira]

Glad I could help!

[@DanielaRodriguez-vb3mt]

Thank you so much! I was beginning to panic that I wasn't getting this chapter in Acct. "I get it now!" yayyyyy

[@Edspira]

+Daniela Rodriguez Wonderful! Accounting can be a little tricky sometimes. There are so many rules to memorize!

[@joycezhang7279]

Just wanna let you know, your videos are great! Helped me get an A in my Graduate Accounting class! Wooo! :) Thanks a lot!! :D

[@Edspira]

Awesome! Congrats on your A :)

[@96applemac]

Great video, really helped me quick for an exam! :)

[@paxonite-7bd5]

i have my cost and management accounting paper day after tomorrow this is really helping sir

[@rob8482]

Another great video... always appreciated.

[@TheFedericohiguain2]

Your videos are super clear. Once again thank you, I will give you credit in my graduation speech haha 😂