I learned a lot from this video, thank you. I have a question: when you do the physical count, you can get the quantity of the inventory but not the value of the inventory. Could you please explain how did you get the value($1600) for ending inventory?
If you purchased the inventory, then the ending inventory would be what you initially paid for it. If you are making/producing the inventory, then your ending inventory will be: new purchases + beginning inventory - cost of goods sold = ending inventory I have a video on calculating Cost of Goods Sold if you need extra guidance: www.edspira.com/topic/cost-goods-sold/ Great question!
If I have multiple sales, which one do I start with when calculating cost of goods sold in a scenario like this? Is it the one that happened the most recently, or the earliest one?
Doing the math, you see that GAFS (Goods Available for Sale) is 75 units (i.e. 20 + 30 + 25 = 75). Also, we know that 40 units sold, so there are 35 units left (i.e. 75 - 40 = 35). Under FIFO, all that remains are the most recent purchases for ending inventory, thus $1,600 (i.e. 25 * 50 + 10 * 40 = 1600).
was literally sitting here crying about accounting and your video saved me
thank you
Don't give up, you can do it!
I have been struggling to try to understand this the past week, and with just this video it all makes sense...
I love how you explain things, thank you.
I love creative accounting methods like these.
THANKS THAT IS HELPED ME ALOT IN MY ASSESSMENT
Thank you!
January 6th, 2021. This man has some insane foresight.
Subscribed! Thank you for this well explained video.
Awesome, thank you!
Had to make a stop into DC to get those accounting board games on January 6 2021
Thanks for your amazing explanation!!
I learned a lot from this video, thank you. I have a question: when you do the physical count, you can get the quantity of the inventory but not the value of the inventory. Could you please explain how did you get the value($1600) for ending inventory?
If you purchased the inventory, then the ending inventory would be what you initially paid for it. If you are making/producing the inventory, then your ending inventory will be:
new purchases + beginning inventory - cost of goods sold = ending inventory
I have a video on calculating Cost of Goods Sold if you need extra guidance:
www.edspira.com/topic/cost-goods-sold/
Great question!
If I have multiple sales, which one do I start with when calculating cost of goods sold in a scenario like this? Is it the one that happened the most recently, or the earliest one?
The earliest one
@@James-ip5gz
Thanks!
Thank you! Got the concept.
Show the general ledger accounts for inventory, purchases etc
How To find Sale when Is Not Given
Detailed explanation😌
Thanks, but I have a question how do you get $10 for 40 units in the ending inventory system?
Doing the math, you see that GAFS (Goods Available for Sale) is 75 units (i.e. 20 + 30 + 25 = 75). Also, we know that 40 units sold, so there are 35 units left (i.e. 75 - 40 = 35). Under FIFO, all that remains are the most recent purchases for ending inventory, thus $1,600 (i.e. 25 * 50 + 10 * 40 = 1600).
well explained, thank you
Thank you❤
Fine
🙏🏾