FIFO vs. LIFO vs. Weighted Average Cost

[@Beagle_Bagels]

It’s taking my professor a week to explain what you said in 6 minutes. He has been making the course overly difficult, but you’ve been making it easy and simple. Thank you!

[@HazeYTPremium]

accounting professors are clinging on to a dying industry for job security.

[@tammyschoenfeldt7625]

oh my gosh!!!!!!!! I'm feeling the pain you just explained!!!!!

[@MichaelOnRockyTop]

I cannot thank you enough for making these Michael, I'm in intermediate one now, and we are on a chapter concerning inventories. I knew you would have a perfect video to be used as a refresher discussing these three different types. You've helped me so much throughout school so far.

[@SupahBro535]

You saved hours of confusion I had earlier with this topic.

[@muny_man]

It's also worth noting that the higher the net income the more taxes have to be paid. Great video!

[@jsr1637]

youre actually the goat, just wanna let you know. THANK U SFM

[@Edspira]

Thank you for making my day with such kind words!

[@wadahbottle]

Thank you for this, now I need this smart toilet!

[@maxines108]

If I can list you all the best things in this world I’d wish you even more, thank you so much for helping me get through my course you’re better than my own Harvard graduated professors

[@Edspira]

Wow, thank you for such a kind comment. You made my day!

[@erinleiholgado5814]

Thank you! Very big help! explained loud and clear sir!

[@Edspira]

I'm glad you found the video helpful! Best wishes!

[@GurlGames]

Thnxx you so much coz of this video I'm able to understand the concept lifo, fifo, weighted method❤️🌈

[@Chekkles]

It took you 6 minutes and 37 seconds to explain something that took my professor two and a half weeks to explain, thank you so much! Now I have to go take this exam in an hour, wish me luck 😬 Edit: Well… I got a 65% But hey, at least I’m pretty sure I nailed the FIFO/LIFO/Weighted Average part 😂

[@KumR]

Awesome. Thank u sir. Can I ask u which software do you use to show & write these colorful videos?

[@Edspira]

SmoothDraw

[@Carly-yf7ql]

thank you so much for this 😭 I couldn’t understand it for the longest time and this helped me understand so quickly

[@Edspira]

Glad it helped!

[@alinamarkova6986]

If you're wondering why this is done: assuming the cost per unit is rising, LIFO would show a smaller profit seeing as your inventory is (technically) worth less than it would have been if you used FIFO. This is because your most costly products are selling at the same price but it costs more to produce/acquire them. For this reason, newer companies are more likely to use LIFO as it will decrease their taxes to an extent INITIALLY. But ultimately they will still have to pay income tax on those less-costly products, so the benefits have a limit

[@MyFinancialFocus]

I love creative accounting!

[@tammyschoenfeldt7625]

Thank you so much. I can see what's going on here a lot better now. I appreciate you :)

[@fatimaqureshi1330]

Very helpful❤ Thank u sir😊

[@Edspira]

Most welcome 😊

[@alfonsoreyes9811]

Excellent explanation, thank you very much

[@Edspira]

Happy to help!

[@felicitynuzum6558]

This really cleared up the whole concept for me, thanks!

[@ashleybernard7961]

You explained this better than my professor 🙌🏽 thank you!

[@Edspira]

Happy to help!

[@tammyschoenfeldt7625]

Thanks!

[@Edspira]

Thank you so much! I'm glad you found the video helpful!

[@juley113]

Bless u 🙏🏼🙏🏼🙏🏼