Financial Accounting – Inventory Costs
What you'll learn
- Understand and accurately track different types of inventory costs including freight, insurance, and purchase discounts.
- Implement and distinguish between different inventory flow methods: Specific Identification, First-In-First-Out (FIFO), Last-In-First-Out (LIFO), and Weighted A
- Recognize the differences, advantages, and disadvantages between periodic and perpetual inventory systems.
- Apply FIFO, LIFO, and weighted average methods in both periodic and perpetual systems.
- Develop a solid understanding of key definitions and terms related to inventory accounting.
- Demonstrate the application of these concepts through a comprehensive problem involving all the topics covered.
- Engage in meaningful discussions about inventory management, cost flows, and their impacts on financial statements.
- Improve problem-solving skills with short calculation practice questions and multiple-choice questions.
- Utilize Excel for managing and calculating inventory-related tasks efficiently.
- Interpret and create financial reports pertaining to inventory in a real-world context.
- Basic understanding of Accounting: Students should be familiar with fundamental accounting principles and concepts. Prior completion of an introductory accounting course is recommended.
- Commitment to Learning: The course covers complex topics that require focus and dedication. Students should be prepared to actively participate in discussions and complete the practice exercises.
- Access to a computer: The course materials include downloadable PDF files and Excel practice files. A computer will be necessary to access and utilize these resources.
Welcome to our comprehensive course on Inventory Cost & Flow - Fundamental Accounting Concepts. This detailed course delves into the essentials of inventory costs and cost flows, offering an all-inclusive understanding of how to account for various inventory-related expenses and the dynamics of inventory flow assumptions.
Our in-depth course explores all facets of inventory costs, guiding students on what costs should be included in the inventory. We scrutinize the methods of accounting for freight costs, insurance costs, and purchase discounts associated with inventory, shedding light on how these factors affect the overall inventory value.
A key feature of the course is the detailed examination of inventory flow assumptions. We study various methodologies, including specific identification, first in first out (FIFO), last in first out (LIFO), and weighted average methods. To provide a thorough understanding, these methods are explored under the lens of both periodic and perpetual inventory systems.
An array of downloadable resources like PDF files, Excel practice files, multiple-choice questions, and short calculation questions complement the instructional video content. These resources facilitate offline learning, practical application, test-taking skills enhancement, and problem-solving. Discussion questions further enrich the learning experience, offering the opportunity for interactive dialogue with the instructor and fellow students.
The course is imparted by an experienced accounting professional and educator, with impressive credentials such as CPA, CGMA, Master of Science in Taxation, CPS, and expertise in curriculum development. The instructor's rich experience in technical accounting issues and teaching a range of accounting classes ensures a high-quality learning experience.
Throughout the course, we will pivot around key definitions and terms related to inventory costing and flows, ensuring that students have a robust theoretical foundation. The learning journey culminates in a comprehensive problem-solving module where students can apply their knowledge to practical scenarios.
This course provides the perfect blend of theory and practice, making it ideal for anyone seeking a deep understanding of inventory costs and flows within the realm of fundamental accounting. We look forward to having you onboard!
Who this course is for:
- Business students who are currently pursuing a degree and wish to gain a comprehensive understanding of inventory management in accounting, especially as it relates to FIFO, LIFO, and weighted average methods.
- New accountants or accounting trainees who want to augment their understanding of inventory accounting methods and their application in both periodic and perpetual inventory systems.
- Small business owners or managers who are involved in inventory management and wish to understand how different accounting methods can impact their financial reporting and decision-making.
- Any individual preparing for accounting certification exams (like CPA or CMA) and seeking in-depth knowledge about inventory cost flow assumptions and systems.
- Professionals in the finance or accounting field who want to update their knowledge or need a refresher course on inventory accounting.
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.