FA31 - Inventory - FIFO, LIFO, Weighted Average Explained
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- เผยแพร่เมื่อ 25 ส.ค. 2019
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Module 7 examines inventory methods of tracking inventory. It explores the differences between FIFO, LIFO and Weighted Average inventory methods. You will learn to prepare inventory records and to record the journal entries related to tracking inventory.
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You have saved all of us accounting students. Thank you SO much for your efforts Tony
There's no way I could ever thank you enough for making learning as fun as you did in this video. You have returned the excitement to understand concepts back to me and I am incredibly grateful to you.
I was clueless days before my exam, before I watched your videos. Happy to say that I aced that exam, thank you for the fantastic videos.
I can't believe I am paying over 300K to my damn university, 62k per course and the teacher has the audacity to ask us to watch Mr.bell's videos. No shade to you, Tony. YOU ARE AWESOME! legit, you are singlehandedly saving my grades. Also I am curious about why you don't like Lifo.
Yea why are you paying that? I mean you chose where you go to school right? You're going to pay that much and come out making 50-60k lol what a terrible idea. Do you have Community college where you live? Maybe try that then switch to Uni?
I’ve looked at multiple videos on LIFO, FIFO and weighted average and I have to say this was the one which was explained perfectly and I fully understand it now. Thank you for the videos man.
Asalam Waalaiqum
I am literally passing my exams because of you Prof! Thanks a bunch!! Love from HFX, NS
Tony I owe you my life I hated financial accounting this whole semester and you make it almost fun for me, your videos are going to help me pass this class thank-you!!
im desperately trying to understand financial accounting through an asynchronous summer class and I swear I watch my professor's videos 3 times over and none of it makes any sense. I watch one of your videos and it is explained so simply. Thank you sir you are a lifesaver and a grade saver!
you should do a video on LIFO. it would be very helpful for Americans
Those examples helped. I had to take an exam of Fifo/Lifo, Merchandise Inventory, Bank Recouncilation and Receiveables and got a 90 out of a 100 on the exam! Thanks!
Woohoo!!!! Congratulations!!! Well done :)
Your welcome thank you!!
Today I found out that you are Canadian... and I also learned about FIFO, LIFO, and Weighted Averages.
This is an AMAZING resource! So thankful that I found this video and channel. Thank you!
I'm taking ACC-105 at Reading Area Community College. This was very helpful. Thank you.
ik you would probably never see this but i love you. you saved my life every time, hope life goes easy on you always
JUST WOOW , whatever you explained i did understand. Thank you so much
for me I really think that the best two and easy methods are FIFO and Weighted average also these are really very common in usage of most of companies around the world
Thank you for making it simple to digest!
Tony, after selling one sock, and we buy more in the inventory. How do we calculate the cogs in the next sale? How the new price is calculated in journal entry?
Hey tony hope you're doing well. Without i would have failed my exam. I am very thankfull and i would really like to contribute for this channel. It might be a small amount for you but i really want to thank you.
Thanks so much Elie! No need to contribute - just viewing and occasionally liking the videos is plenty - that's very kind of you to offer! Good luck in the rest of your studies.
Thanks Tony Bell. Useful one
Will these videos help for the financial accounting CLEP test??
So well explained!!
wonderful explanation
Thank you for this video ❤
Good day sir. If you credit inventory, wont you debit A/R?
Hi sir
Among the four which one is profitabale?
Could you do a video on LIFO and FIFO periodic?
YOU ARE MY HERO
Was wondering why this guy was so peppy and friendly. My mans isn't American, he's Canadian
Thank you so much!
material is very clear, confused about the milk from the back method tho
Hi, I have a question about calculating COGS. FIFO and LIFO seem too complicated for where I’m at and so the simplicity of WAC (weighted average cost) is very appealing. However, the inconsistent use of terminology in various articles / videos I’ve come across discussing WAC has me confused. Is a WAC calculation done for (A) each product in inventory or is it calculated using (B) the total cost of all products in inventory?
For example, let’s say I have 500 different products in my inventory. Some products have an average cost of $1 per unit, and other products can average $20,000 per unit. If I were to calculate WAC using (B) the total cost of all products in inventory, then the average cost of one unit of inventory would be around $2,000. Now let’s say I sell a product for $2. My COGS for that sale would be $2,000???
"B" doesn’t seem right. What am I missing?
You have to do it for every single product individually - as you suggested, lumping everything together wouldn't work! This is an area where computerized/automated systems help a lot!! As you can imagine it's a lot to keep track of. You need to do it individually for FIFO/LIFO also, so inventories are a lot of work to account for.
@@Tony-Bell Thanks for clarifying, Tony. Much appreciated!
Thanks 😊👍
why dont you like LIFO? super curious!
I think lifo is bad because wouldn't you want the stuff that is begging to get old to leaves shelves first(fifo) rather than the last items stocked being the first to go (lifo)?
* beginning sorry
That's it - Inventory doesn't typically move in a LIFO way, so why track it in a LIFO way - it's simply a tax avoidance trick! Not reflective of reality.
@@Tony-Bell So it makes companies able to artificially increase their costs without actually spending more for tax purposes?
@@andrew.sandler That's it (as best as I can understand it anyway!)
Tsym!!!
sifuna ukufunda wena ulokhu usineka
11:53, did you say "Account wait to see you in the next-" did you make a pun??? xD
Haha - not on purpose! I am a dad though, so puns sometimes slip out....
Wouldn't LIFO be better for a company because they get rid of their higher debts faster?
Imagine in 1982 Home Depot purchases 10,000 one-inch nails. They never sell out completely, but re-order once they are below 5,000. Under LIFO we will still have nails with 1982 costs on the books because First-In is Still Here! I don't like the system because it simply doesn't reflect reality of how companies move their inventory.
@@Tony-Bell Yeah, I'd agree, the only thing I'd see is that in your case it refers more to market prices ... or imagine very specific products like wine or whiskey. It gonna keep your company value at a low level. In Germany it's allowed under certain rules, though in IFRS accounting it's forbidden.
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