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 LIFO. You'll discover how the Last 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
00:48 What is the Inventory Calculation?
01:04 What do Inventory Cost Flow Assumptions do?
01:26 What are Inventory Cost Flow Assumptions?
01:38 The three assumptions: FIFO, LIFO and AVCO
01:50 How LIFO works (Last In First Out)
02:01 Accounting with LIFO Example
02:57 Step 1: Draw an Inventory Cost Flow Table
03:10 Step 2: Enter what you know
04:32 Step 3: Fill in the blanks
06:52 Step 4: Cost of Goods Sold and Closing Inventory
07:30 Advantage of LIFO
07:44 Disadvantage of LIFO
08:01 FIFO vs LIFO vs AVCO

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