FIFO Inventory Accounting Method EXPLAINED | First In, First Out Inventory Cost Flow

Video Description

🔥 Struggling with financial data? Learn the basics in just 30 minutes—for FREE! Sign up now! 👉 https://link.xelplus.com/yt-free-finance-basics In this video you'll learn how the FIFO (first in, first out) inventory cost assumption works. The FIFO method assumes that the oldest products in a company’s inventory have been sold first. We'll practice using an example to illustrate how FIFO is used to calculate cost of good sold (COGS) and ending inventory. We'll also compare FIFO with the LIFO method so we can understand the difference between these calculations. 00:00 The FIFO Inventory Method 01:34 Why Inventory Cost Assumptions Are Used 02:39 The FIFO Inventory Principle Explained 03:02 Accounting With FIFO - An Example 04:21 Comparison With LIFO Inventory Method 05:08 Advantages of FIFO 06:09 Calculating Closing Inventory with FIFO 07:28 Wrap Up ______________ ★ My Online Excel Courses ► https://www.xelplus.com/courses/ ➡️ Join this channel to get access to perks: https://www.youtube.com/channel/UCJtUOos_MwJa_Ewii-R3cJA/join 👕☕ Get the Official XelPlus MERCH: https://xelplus.creator-spring.com/ 🎓 Not sure which of my Excel courses fits best for you? Take the quiz: https://www.xelplus.com/course-quiz/ 🎥 RESOURCES I recommend: https://www.xelplus.com/resources/ 🚩Let’s connect on social: Instagram: https://www.instagram.com/lgharani LinkedIn: https://www.linkedin.com/company/xelplus Note: This description contains affiliate links, which means at no additional cost to you, we will receive a small commission if you make a purchase using the links. This helps support the channel and allows us to continue to make videos like this. Thank you for your support! #accounting #fifo #CostAccounting