Inventory Cost Flow Assumptions Cheat Sheet → https://accountingstuff.com/shop

In this video you'll learn about Inventory Cost Flow Assumptions. There are three of these:

▪ FIFO First In First Out
▪ LIFO Last In First Out
▪ AVCO Weighted Average Cost Method

This accounting tutorial focusses on FIFO. You'll discover how the First In First Out method works and get to practice using it with an example. This episode is part of a miniseries exploring Inventory in Accounting. You can find the link to the whole playlist here ⬇

Full Inventory Playlist →    • Accounting for INVENTORY (MiniSeries)  

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⏱TIMESTAMPS
00:00 Intro
01:02 When do we need Inventory Cost Flow Assumptions?
02:09 What are Inventory Cost Flow Assumptions?
02:19 The three assumptions: FIFO, LIFO and AVCO
02:41 How FIFO works (First In First Out)
03:01 Accounting with FIFO Example
04:02 Step 1: Draw an Inventory Cost Flow Table
04:19 Step 2: Enter what you know
06:09 Step 3: Fill in the blanks
09:00 Step 4: Cost of Goods Sold and Closing Inventory
09:42 Advantages of FIFO
10:08 FIFO vs LIFO vs AVCO
10:20 Disadvantage of FIFO

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