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 AVCO. You'll discover how the Weighted Average Cost 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
00:37 What is the Inventory Calculation?
01:09 The three assumptions: FIFO, LIFO and AVCO
01:23 How AVCO works (Weighted Average Cost)
01:58 Accounting with AVCO Example
02:41 Step 1: Draw an Inventory Cost Flow Table
02:55 Step 2: Enter what you know
04:17 Step 3: Fill in the blanks
07:10 Step 4: Cost of Goods Sold and Closing Inventory
08:03 FIFO vs LIFO vs AVCO

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