INVENTORY & COST OF GOODS SOLD
ฝัง
- เผยแพร่เมื่อ 3 มิ.ย. 2024
- 💥Inventory (Merchandising Business) Cheat Sheet → accountingstuff.com/shop
In this video you'll find out what Inventory means and how to account for it in a Merchandising Business. We'll cover the link between Inventory in the Balance Sheet and the Revenue & Cost of Goods Sold accounts in the Income Statement. This episode is part of a mini-series exploring Inventory in Accounting. You can find the link to the whole playlist here ⬇️
🔗Full Inventory Playlist → • Accounting for INVENTO...
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⏱️TIMESTAMPS
00:00 - Intro
00:55 - Manufacturing vs Merchandising Businesses
01:23 - Inventory in a Manufacturing Business
01:36 - Inventory in a Merchandising Business
02:12 - Why Inventory is an Asset
02:29 - Inventory Worked Example - Question
03:22 - Inventory Worked Example - Solution
08:41 - Recap
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#accounting #accountingbasics #accountingstuff
Hey there, it's been a while! I'll link to the playlist in the description once I've released the rest of the Inventory Mini-Series. Here are the timestamps for those who'd like to jump ahead...
00:55 - Manufacturing vs Merchandising Businesses
01:23 - Inventory in a Manufacturing Business
01:36 - Inventory in a Merchandising Business
02:12 - Why Inventory is an Asset
02:29 - Inventory Worked Example - Question
03:22 - Inventory Worked Example - Solution
08:41 - Recap
Welcome back!
@@ikekeonwu Cheers!
Question is accounting your career or something
@@PlumbusPete It is
You're legend thanks alot 😉
The fact that I don't even read the book for my classes anymore, I just watch your videos and take notes. What my professor spends two to three 4 hour lectures explaining in a boring way, you manage to do in a blip! You're my saviour.
Great to hear you're finding these useful! All the best with your studies :)
This guy deserves an award for his video editing!!!
Thanks Pranav! The edit takes a long time to put together
@@AccountingStuff and you might be wondering why I recently looked up your videos, well I aced my finals with your amazing videos as its a fun learning experience!
No words to thank you!
@@pranavpugaonkar6674 Nice one!! That's great to hear!
You’re a life saver! We’re covering this in my accounting class and I didn’t understand it! Thank you so so much! Don’t stop uploading! All us undergrad students thank you!
Hey Abigail, hope it makes sense now. And thanks, I plan to release a lot more videos
Everyone says accounting is so easy but I find it really confusing at times, if it weren't for your videos I would be failing my classes. Thank you so much!!
You are the sole reason I am passing my financial accounting class. Also, your cheat sheets are GOLD. Thank you!
Congrats Briana! Great to hear it's going well for you
Agreed....with no bck ground in accounting, so many of my concepts hv cleared up.
You are the only reason Im doing well in my accounting class. I’ve purchased the cheat sheets and A&Q packs, they are so helpful!! Keep the videos coming 😄
Thanks for your support! Best of luck in your classes
I am halfway through the basics playlist and I cannot stress how great you are at explaining topics. Im doing my MBA right now and I cant force myself to read dozens of pages a day on accounting but these videos are so effective that I can learn so much and retain the information. I tell everyone in my class how helpful these videos are and now most of the class uses DEALER lol. I am very grateful you put this series together, thank you!
Great lesson James! The accounting entries for COGS are now clear. Thanks!
Thank you, James! I'm so happy you're back!!!!
Cheers Mariyana, it's good to be back. All the best!
you singlehandedly save my accounting grade with these videos
Great, glad you found them useful. Good luck!
The way you explain it makes me understand so easily..thank you....
Your videos are SAVING my life in my financial accounting class. You break it down in an understandable way and the edits make the content much more engaging. Thank you!
Thanks Emma! Glad you're finding these helpful. All the best in your studies :)
I have this competition in a week and I've been watching all your vids. It's been saving me, without it I would've been doomed. You make it all look so simple. Thanks!
Good luck, hope it goes well!
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Cheers Jack!
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Still saving saving students years later! Thanks man!
It's just such a big help for anyone who wants to learn accounting. You made it so easier and visual to understand. Thank you so much.
Cheers, I'm happy to help!
You're going to be the reason I pass my accounting exam tomorrow (I really hope I do!) Its been so hard to teach myself (my professor isn't very good.)
So grateful for your videos, helping reduce lots of time and energy that textbook
Hey man i wanna personally thank you for making this content. It's been near 3 years since i last took accounting principal classes and given ill be taking intermediate accounting this fall for my BA i needed this to refreshen my memory so i can be at my best and not be too clueless when Fall starts. thank you amigo
Cheers Omar, I'm happy to help! All the best
I'm starting intermediate accounting in a few days at uni, and these inventory videos definitely helped refresh my memory! Awesome job, I also purchased your cheat sheets! Your channel saved me!
Thanks for your support!!
Where can u purchase them ?
This was a great, clear explanation. It was very effective in giving me the big picture, not just the procedure.
Thanks Joan, glad you enjoyed it!
You sir, are a life saver. Everything makes sense now in this chapter! Thank you!
Nice one!!
Thanks, I am learning a lot from your all videos. May God reward you
Your videos are very easy to understand, and very helpful. direct and to the point. You are truly skilled in the art of explaining!
Many thanks :)
Thanks Simran!!
Thank you so much! I am going to apply for the accounting position in the company that I have been dreaming of, and your videos help me to prepare for their exams! Thanks for helping people to achieve their goals!
No worries Ilaha, good luck with your application. Hope you get the job!
Beautifully put together !
Nice and digestible explanation!!! I like the way you teach us Accounting: Which I LOVE💯Take care, GBY👏💯
I like the way he makes it simple for us beginners or learners to understand...And the way he takes his time to like and reply to every comment....
Thanks Alex! Hope it's all making sense :)
Hey James, have been watching your videos for many doubts and I'd say it's absolutely amazing to rely on you for different things. We use IND AS here instead of IFRS in the case of corporates dealing with regional transactions but IND AS has so many similarities with IFRS and there's some different of just terminology that's all. For example we use traditional norms with modern ones so we treat account payables as creditor's A/C and vice versa. Even in making of the financial statements we have trading account although not much different since it's a specific account for clarification including sales and purchases and costs incurred ( depends on manufacturing unit ) which lets us find gross profit/loss then operating expenses and revenue as you described after used for net profit including taxes in it only.
I'm very happy you posted! We just finished the chapters on merchandising businesses and inventory management, but this is a great review for me and I will refer struggling classmates to this!
Perfect timing! Cheers Sam, hope all's good with you
Thank you for making these videos!! I've gone back to school in my late 40's and I find your videos the easiest to understand compared to the others my school suggests watching to assist learning in our online class. Now to buy your cheat sheets :) Keep up the great work!
Thanks Heather and cheers for your support!
So grateful for these videos! thank you!
You saved my sanity!!!!!!! I dread this accounting class but actually you help me understand it in a simple way. Why do they have to teach in such a lame confusing way.
No problem, happy to help!
Each one of these 10-minute videos is a lot clearer than the equivalent hour it takes our professor with a PhD to explain it.
Thanks Eamonn!
So grateful for this! Super helpful during my MBA.
Thanks Richard, all the best with your MBA!
Thank you for making this requested video! I really appreciate your time and effort you put into it
No worries!
feeling safe while understanding big things! how fun your teaching method is, thanks alot.
You're very welcome!
greatful and interested in the way he simplify the small difference between manufacturing and merchandising
I need to do a video on manufacturing at some point too
Thanks bro! Preparing myself to handle bookkeeping for our family business then I encounter your accounting series. Really a lifesaver, i'm about to be done in a few more videos! Cheers bro! God bless in these troubled times. Happy holidays!
Hey there, best of luck with doing the bookkeeping!
I love your channel you explain it so well THANK YOU
been having a difficult time understanding accounting cause I was forced to study it in the university, I had really bad grades and all but that was wayyyy before I stumbled on your channel ive never been so happy about my performance'and its all thanks to James.
You make a wonderful teacher. Job well done!
No worries Manuela! I'm sorry to hear that you've been having a difficult time with accounting. Great to hear that things are taking a turn for the better!
You are such an accounting genius. Your class is very effective. Thanks man👍
Cheers Bayonle!
I really learn a lot of his videos, it is not boring because you will be entertained by all the amazing edits. Thank you for this🥰🥰
No worries Diana, all the best with your studies!
Hello James,
I hope you are doing well!
I'd just like to thank you for your videos!
I've worked in the Financial/Accounting department (in the last one since last year) for 8 years, and I'm an accounting student trying to become an accountant.
I'm from Brazil and I speak Portuguese, but I've been trying to learn English and with your videos I could merge the two things, practicing my English and learning vocabulary about Accounting.
Just thank you!
Your videos were great and very explanatory, congratulations!
Thanks Michael! It must be tough learning accounting in your second language. Good luck! I hope it works out for you
This was an excellent presentation.
Hello brother, actually u deserve more than ur expectations! Thanks for such creative sample informative videos to summarise basics concepts of accounting 👍🏼
Thanks for your kind words!
Thank you for your videos! They are so helpful and clear! Helps me prepare for a job interview. Thanks!
Best of luck!
Carrying me through my undergrad. Thanks for all your help!
No problem Caylyn, hope it's all going well!
thanks, looking for this exactly, everybody talking about credit inventory debit cash, but didn't mention about where the inventory go
Please keep making video like this.. love to watch it! I can't find any other intersting accounting channel
Thanks Ardhany, I plan to make many more just like it
Dude! That's just what I needed now keep them coming looking forward to your help need your help understanding this stuff I gotta have a ferm grasp of this to bad you cant join me and my friends
I have found another interest watching your videos. Thanks!😁
You are very welcome! Great to hear that you're getting into the subject
Thank you so much for making these videos!! It helps me out a lot! Could you do a video explaining consolidated financial statements? And also how to calculate goodwill and non-controlling interests?
No worries Joyi, thanks for your suggestions!
thank for all of your efforts man , you are a real hero
My pleasure!
Welcome back James! Great video as always!
Cheers Michele! We should catch up soon
O MY GOD! I have never seen anybody who can explain all this accounting stuff so clearly, so simply so understanable. I am studing ACCA FA, and each time I dont understand smth I am searching for your vision of that topic. THANK YOU VERY MUCH!!!!!! If I would get F3 and become rich ( 1000$ per month means rich in my country ) , I will find you to say thank you personally ❤
Best of luck with your studies!
hiya James :) just wanted to say i especially liked the music starting at 2:51, it was really relaxing and made it way easier for me to focus (not to say anything is distracting, it just improved my learning!) keep up the great work xx
Mellow vibes :)
Bruh Such a good video... Keep up the good work
LOL....toques! Love all the humour in your videos; makes it so much easier to learn!
Almost time to start wearing them again :)
Great explanations as usual! More content on anything accounting please!
Cheers Manny! I've got plenty of ideas for more videos
thanks for all your tutorials you're a life saver!
You're welcome :)
hey man you are the best u saved me in this lesson thank youu!!!!!!
I was working on an accounting project for classwork and realized the one thing that just was not balancing was inventory and cogs. Thanks for saving my project lol. Accounting is such a dry read but it's easier to see a video explanation.
THANK YOU FOR EXISTING 💋!!!! 😭😭😭💗💗 WAAAA.
I think your channel is made FOR ME!!!
Great to hear you're enjoying the channel!
this explanation is just pure gold - I swear I understood nothing from my lecturer’s presentation, and after watching this video + the one about perpetual and periodic inventory I have no problem with my accounting exercises - they became fun haha! Huge thank you!!
(sorry for spamming with comments but im right before my exams and im just absolutely loving your content!)
Great to hear it's making sense. Best of luck in your exams!!
@@AccountingStuff I got everything correct at my accounting exam! Huge thank you❤️
@@nataliadeja69 Congrats 🔥
great explanation, thank you
You are definitely going to heaven for this , thank you so much
Very well explained Thank you😊👍
No problem, all the best :)
I missed my class when my professor illustrated this topic. Thanks for your videos and I am considering skipping my accounting class and just watching your videos.
What's up James, I'm from Brazil and I love your channel!
Thanks Cleiton!
Your videos are great - good stuff - high quality
Thanks!
You are a GREAT TUTOR💯✏📒😊This was amazing help for me in order to figure out what I have to understand!
Thanks for your kind words. Glad you found the video helpful :)
Thank you so much! I feel like I am one with accounting because of this video.
That's awesome!
This video is so much helpful! Good work! Hope to see more videos from you! Greeting from Australia !
Cheers, glad to hear it!
James: The Accounting Superhero no one knew we needed! Thank you for making accounting make cents =P
Haha thanks for your kind words :)
Thank you so so much! You did a perfect job.
Thank you!
Hello James, thanks for sharing the topic on Inventory! It's very clear and easy to understand! May I know will you be making a video on Inventory in a Manufacturing Business as well?
THIS REALLY HELPED!!!! THANK YOUUUU SOOOOO MUCH!!!!!!!
No worries Aliza, glad to hear it :)
I'm struggling in my course and this really help me
Hope things are getting better now
Love to see you again man! Also, could you do a video explaining Depreciation and the methods?
Hey Alessio, thanks for your suggestion. I would like to cover Depreciation soon
Thank youuuu so muchh. You make accounting fun to learn ❤️
No worries, I'm happy to help!
Totally understand the concept, thank you sooo much
Nice one Liam!
After a long time ... Was waiting eagerly for your videos thank you
Thanks for your patience, there are many more vids coming soon!
Thanks👍 this video help me understand a lot.
No problem, glad you found it useful
Man, you're a life saver. One question for you: How does the purchase ledger transactions get recorded if the purchase journals are just Dr Inventory Cr Accounts payable? I would have thought it would be something like Dr Purchases Cr Accounts payable
Excellent video. Thank you so much.
Cheers!
Wow, this really helped me understand all of this. And I now know how the word "toque"
I am starting an e-commerce business and was confused how if I purchase inventory, and then don't do anything until it sells, the value of the inventory will go in a black hole and kill my balance sheet.
Cheers, glad it's making sense. Best of luck with your new business!
Love to learn about this in a super fun way... and during a lockdown! Thanks! (Maybe some videos about ratios? :))
I plan to make a whole series on ratios sometime soon :)
Thank you , clear precise and easy to understand the full picture
I am looking for info on how purchase returns and sales returns affects the inventory account,,,
I'll keep that in mind for future videos :)
Thank you so much. This really helps.
No worries, glad it helped :)
This, sir, is a masterpiece.
Thanks, I'm glad you enjoyed it :)
YO THIS IS THE CHAPTER I WAS ON AND I LOOKED UP IF YOU MADE A VIDEO ON IT 2 DAYS AGO AND THIS JUST CAME ON MY FEED ! (ICAEW Student!)
Timed to perfection!
Wonderful explanation of cogs you should have atleast 1m views on this video thanks
Thanks Ahsan!
Hi,
Sir, you are legend! You have really simplified the complex things in an artistic way. Sir, I will be greatful to you if you start teaching Quickbook online in detail.
Cheers Saqib and thanks for your request!
Woot. Thanks for coming back.
Cheers Dustin, it's good to be back at it
What a Legend. Thanks man
Cheers buddy, all the best!
Excellent.
Thank you so much!! big help!! 🙏👍
No worries :)