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30-Day Money-Back Guarantee

This course includes:

  • 12.5 hours on-demand video
  • 20 downloadable resources
  • Full lifetime access
  • Access on mobile and TV
Finance & Accounting Accounting & Bookkeeping Financial Accounting

Financial Accounting – Inventory Costs

Inventory cost flow assumptions - First In First Out (FIFO), Last In Firs Out (LIFO), Weighted Average Methods
Rating: 4.6 out of 54.6 (68 ratings)
11,984 students
Created by Robert (Bob) Steele
Last updated 6/2019
English
English [Auto]
30-Day Money-Back Guarantee

What you'll learn

  • Inventory Costing
  • First In First Out (FIFO) cost flow method
  • Last In First Out (LIFO) cost flow method
  • Weighted average cost flow method
  • Periodic inventory method
  • Perpetual inventory method

Requirements

  • We should have a basic understanding of financial accounting and debits and credits.

Description

We cover inventory costs and cost flows, including what is included in the cost of inventory and how to account for inventory freight costs, inventory insurance costs, and discount. We also discuss inventory flow assumptions including specific identification, first in first out (FIFO), last in first out (LIFO), and weighted average methods. FIFO, LIFO and weighted average methods will be discussed using both a periodic inventory system and a perpetual inventory system. 

In addition to instructional video, this course will include downloadable

•    Downloadable PDF Files

•    Excel Practice Files

•    Multiple Choice Practice Questions

•    Short Calculation Practice Questions

•    Discussion Questions

The PDF files allow us to download reference information we can use offline and as a guide to help us work through the material.

Excel practice files will be preformatted so that we can focus on the adjusting process and learning some of the basics of Excel, like addition, subtraction, and cell relationships.

Multiple choice example question helps us improve our test-taking skills by reducing the information into the size and format of multiple choice questions and discussing how to approach these questions.

Short calculation questions help us reduce problems that have some calculation down to a short format that could be used in multiple choice questions.

Discussion Question will provide an opportunity to discuss these topics with the instructor and other students, a process many students find very helpful because it allows us to see the topic from different viewpoints.

Who will we be learning from?

You will be learning from somebody who has technical experience in accounting concepts and in accounting software like QuickBooks, as well as experience teaching and putting together curriculum.

You will be learning from somebody who is a:

•    CPA – Certified Public Accountant

•    CGMA – Chartered Global Management Accountant

•    Master of Science in Taxation

•    CPS – Certifies Post-Secondary Instructor

•    Curriculum Development Export

As a practicing CPA the instructor has worked with many technical accounting issues and helped work through them and discuss them with clients of all levels.

As a CPS and professor, the instructor has taught many accounting classes and worked with many students in the fields of accounting, business, and business applications.

The instructor also has a lot of experience designing courses and learning how students learn best and how to help students achieve their objectives. Experience designing technical courses has also benefit in being able to design a course in a logical fashion and deal with problems related to technical topics and the use of software like QuickBooks Pro.

Summary of what will be covered: 

  • Inventory Tracking methods
    • Specific identification method
    • First in first out (FIFO) method
    • Last in first out (LIFO) method
    • Weighted average method
  • Inventory costs
    • Fright
    • Insurance
    • Purchase discounts
  • Periodic system verses a perpetual system. 
    • We discuss FIFO, LIFO, and weighted average under each system. 
  • Key definitions
  • Comprehensive problem

Who this course is for:

  • Accounting students
  • Business owner
  • Anyone who whats to learn accounting

Course content

11 sections • 96 lectures • 12h 33m total length

  • Preview05:42

  • Preview00:41
  • Preview00:08
  • Preview06:09
  • PDF - 15 600 Inventory Methods Explained and compared FIFO LIFO Ave
    00:08
  • 15 600 Inventory Methods Explained and compared FIFO LIFO Ave
    09:02

  • Inventory Cost, Principles, and Perpetual vs Periodic Methods
    01:28
  • PDF - 17 Inventory Costs
    00:08
  • 17 Inventory Costs
    08:39
  • PDF - 20 Consistency Concept
    00:08
  • 20 Consistency Concept
    03:46
  • PDF - 30 Lower of Cost or Market
    00:08
  • 30 Lower of Cost or Market
    04:04
  • PDF - 40 Perpetual & Periodic Inventory Systems
    00:08
  • 40 Perpetual & Periodic Inventory Systems
    10:14
  • Discussion Question 1 Inventory Cost
    02:58

  • Periodic System First In First Out (FIFO)
    00:32
  • PDF - 42 First In First Out (FIFO) Periodic System
    00:08
  • 42 First In First Out (FIFO) Periodic System
    34:17
  • Excel Download
    00:05
  • Worksheet FIFO Periodic System
    47:53
  • Discussion Question 2 - Inventory Cost
    07:31
  • Accounting Comic Break
    00:14

  • Periodic System Last In First Out (LIFO)
    00:49
  • PDF - 44 Last In First Out LIFO Periodic
    00:08
  • 44 Last In First Out LIFO Periodic
    34:10
  • Excel Download
    00:05
  • Worksheet Last In First Out (LIFO) Periodic System
    44:44
  • Discussion Question 3 Inventory Cost
    06:15
  • Multiple Choice 1 - Inventory Cost
    09:19

  • Periodic Weighted Average Method
    00:44
  • PDF - 46 Weighted Average Periodic System
    00:08
  • 46 Weighted Average Periodic System
    29:07
  • Excel Download
    00:05
  • Worksheet Weighted Average Periodic System
    49:22
  • Discussion Question 4 Inventory Cost
    05:58
  • Multiple Choice 2 - Inventory Cost
    11:39

  • Perpetual System First In First Out (FIFO)
    00:37
  • PDF 50 600 First In First Out FIFO Explained
    00:08
  • 50 600 First In First Out FIFO Explained
    09:12
  • Excel Download
    00:05
  • 600.10 Inventory Cost Problem First In First Out part 1 Ex.%2C how to calculate
    11:01
  • 600.20 Inventory Cost Problem First In First Out part 2 Ex.%2C how to calculate-
    12:05
  • Discussion Question 5 Inventory Cost
    05:01
  • Multiple Choice 3 - Inventory Cost
    09:34

  • Perpetual System Last In First Out LIFO
    00:36
  • PDF - 60 600 Last In First Out LIFO Inventory Method Explained
    00:08
  • 60 600 Last In First Out LIFO Inventory Method Explained
    07:41
  • Excel Download
    00:05
  • 600.50 Cost Problem Last In First Out LIFO part 1 Ex.%2C how to calculate-Accoun
    10:02
  • 600.60 Cost Problem Last In First Out LIFO part 2 Ex.%2C how to calculate-Accoun
    10:09
  • Discussion Question 6 Inventory Cost
    04:44
  • Multiple Choice 4 - Inventory Cost
    15:28
  • Short Calculation Test Questions 1
    12:01

  • Perpetual System Weighted Average Method
    00:41
  • PDF - 70 600 Average Inventory Method Explained
    00:08
  • 70 600 Average Inventory Method Explained
    07:03
  • Excel Download
    00:05
  • 600.30 Inventory Cost Problem Average method Part 1 Ex.%2C how to calculate-Acco
    10:01
  • 600.40 Inventory Cost Problem Average method Part 2 Ex.%2C how to calculate
    08:47
  • Discussion Question 7 Inventory Cost
    04:01
  • Multiple Choice 5 Inventory Cost
    10:57
  • Short Calculation 2
    15:40

  • Definitions & Key Terms
    00:51
  • Average Cost Definition - What is Average Cost%3F
    04:34
  • Conservatism Constraint Definition - What is Conservatism Co
    02:14
  • Consignee Definition - What is Consignee%3F
    02:32
  • Consignor Definition - What is a Consignor%3F
    02:39
  • Consistency Concept Definition - What is Consistency Concept
    02:32
  • Days Sales in Inventory Definition - What is days sales in i
    02:03
  • First in First out Definition FIFO - What is First in First
    03:48
  • Gross Profit Definition - What is Gross Profit%3F (1)
    02:18
  • Interim Financial Statements Definition - What are Interim Financial Statements%
    02:09
  • Inventory Turnover Definition - What is Inventory Turnover%3F
    01:49
  • Last in First Out LIFO Definition - What is Last in First ou
    03:32
  • Lower of Cost or Market Definition - What is Lower of Cost o
    01:51
  • Net Realizable Value Definition - What is Net Realizable Val
    02:17
  • Retail Inventory Method Definition - What is Retail Inventory Method%3F
    03:26
  • Specific Identification Definition - What is Specific Identi
    03:31
  • Weighted Average Definition - What is Weighted Average Metho
    04:04
  • Multiple Choice 6 Inventory Cost
    15:47

Instructor

Robert (Bob) Steele
CPA, CGMA, M.S. Tax, CPI
Robert (Bob) Steele
  • 4.4 Instructor Rating
  • 14,655 Reviews
  • 304,966 Students
  • 91 Courses

Through working with students from many different schools, Mr. Steele has learned best practices for helping people understand accounting fast. Learning new skills and finding the best way to share knowledge with people who can benefit from it is a passion of his.  

Mr. Steele has experience working as a practicing Certified Public Accountant (CPA), an accounting and business instructor, and curriculum developer. He has enjoyed putting together quality tools to improve learning and has been teaching, making instructional resources, and building curriculum since 2009. He has been a practicing CPA since 2005. Mr. Steele is a practicing CPA, has a Certified Post-Secondary Instructor (CPI) credential, a Master of Science in taxation from Golden Gate University, a Bachelor’s Degree in Business Economics with an emphasis in accounting from The University of California Santa Barbara, and a Global Management Accounting Designation (CGMA) from The American Institute of CPA (AICPA).  

Mr. Steele has also authored five books that can be found on Amazon or in audiobook format on Audible. He has developed bestselling courses in accounting topics including financial accounting and QuickBooks accounting software.  

In addition to working as an accountant, teaching, and developing courses Mr. Steele has helped create an accounting website at accountinginstruction, a YouTube channel called Accounting Instruction, Help, and How Too, and has developed supplemental resources including a Facebook Page, Twitter Page, and Podcasts that can be found on I-tunes, Stitcher, or Soundcloud. Mr. Steele's teaching philosophy is to make content applicable, understandable, and accessible.  

Adult learners are looking for application when they learn new skills. In other words, learners want to be able to apply skills in the real world to help their lives. Mr. Steele’s formal accounting education, practical work experience, and substantial teaching experience allow him to create a curriculum that combines traditional accounting education with practical knowledge and application. He accomplishes the goals of making accounting useful and applicable by combining theory with real-world software like Excel and QuickBooks.  

Many courses teach QuickBooks data entry or Excel functions but are not providing the real value learners want. Real value is a result of learning technical skills like applications, in conjunction with specific goals, like accounting goals, including being able to interpret the performance of a business.  

Mr. Steele makes knowledge understandable by breaking down complex concepts into smaller units with specific objectives and using step by step learning processes to understand each unit. Many accounting textbooks cram way too much information into a course, making it impossible to understand any unit fully. By breaking the content down into digestible chunks, we can move forward much faster.  

Mr. Steele also makes use of color association in both presentations and Excel worksheets, a learning tool often overlooked in the accounting field, but one that can vastly improve the speed and comprehension of learning accounting concepts.  

The material is also made understandable through the application of concepts learned. Courses will typically demonstrate the accounting concepts and then provide an Excel worksheet or practice problems to work through the concepts covered. The practice problems will be accompanied by an instructional video to work through the problem in step by step format. Excel worksheets will be preformatted, usually including an answer tab that shows the completed problem, and a practice tab where learners can complete the problem along with a step by step presentation video.  

Mr. Steele makes learning accounting accessible by making use of technology and partnering with teaching platforms that have a vision of spreading knowledge like Udemy.

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