Name: Accounting For Beginners #11 / Fifo and Lifo Inventory / Basics
Uploaded: 2017-06-23T13:56:49.000Z
Duration: 5 min 25 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Modal verbs - A2

Jonathan N. Dorn CPA.  As you can see this is Lifo and Fifo Inventory

valuation, to  see how much your inventories worth, and your cost of goods sold

worth, and your net income,  so this is just really fast how I do it

ok, so i got FIFO  first-in-first-out, LIFO last in  - first out

this is for rising prices too, everything your going to see, is gonna say, oh rising prices and

inflation you know, very rarely i would think the prices go down,  anyway so

30          10 20 30  This is how you get the inventory, this is how you get your  product

ok rising prices,  well  say,  you know first batch is $10  second batch  $20

Third batch $30,  okay I kind of think of this like a conveyor belt.

alright anyways,  first-in-first-out,  ok but it comes from this way, always in

rising prices,   look first-in-first-out,  would be here !!

last in first out,  there,  so first out means that they sold it, sold it your

last you know, out means sold,  so that's going to be your cost of goods sold

that's inventory, right here,  this is going to be your

here's going to be your inventory !!!! all right

got that.  so, if you do first in first out your costs are going to be lower

now what's that do your income??? If your costs are down,  your incomes up.  there inverse

what about LIFO ?? you do last in first out with rising prices your costs are

going to be higher,  inventory is going to be lower,  and Net  income,  if your  costs are

higher,  that means you're Net Income is going to be lower

alright,  see you would think,   everyone would just do this. Right?   because your incomes lower.

Income lower.  that means you pay less taxes,  but really,  if you think about

is this , last in first out doesn't make sense

so you're saying,  the last thing in,  so just came

off the truck,  and that's the first thing you sell ???? What about the stuff sitting on the shelf??

we're not going to get into that,  but anyways like to keep this short

but that's just how fast you can do this,  so i will show you how fast

you know if you to question or something on a test,  you can just fill it in like this

FIFO  because it's the first one And LIFO      10  20  30

first-in-first-out.  last in  first out COGS COGS     Inventory Inventory

this is lower,  so this is higher,  inverse, stays  with that,  higher,  what's the

COGS are higher,  INV Lower,  Net Income  Lower