You explained cash flow assumptions in less than 25 minutes, while my teacher barely made sense of the information in an hour and 15 minutes. So thank you!
My teacher spent over 5 hours with me trying to help me figure this out. It didn't work. I spend like 25 minutes watching your videos and I understand it so much more! Thank you so much!!
Thank you for this. My instructor is incapable of properly teaching us these methods in the span of 3 hours yet you did it flawlessly in less than 5 minutes. I appreciate you, sir!!
Bro you explained this so well, been staying up ridiculously late reviewing my professors notes confused as hell just to find your videos and find the solutions in minutes. Appreciate you my man
I should probably start paying my tuition to you than my teachers you explain it so well and easy. 💖 i hope i'll nailed my exan tomorrow. Wish me luckk
Thank you SO MUCH for making the FIFO, LIFO, and Average Cost Videos! You made it WAY easier and explained it much better than my professor did. She always moves so quickly so I thought that these were much more difficult than they actually are. Thank you for making it so easy!
No problem. Stay tuned to www.edspira.com this semester. I'll be uploading exercises and quizzes to accompany the managerial accounting videos. Best of luck to you!
Thank you very much for putting such a wonderful video. It has cleared AVCO Method so good that now i can also explain it to others. Thank you very much Edspira. Please keep on putting more Financial Accounting Videos. We really appreciate your good efforts.
Gobind Rawat, I'm glad you liked this video! I actually have an entire financial accounting course that is available for free on my website. It currently has 249 videos, and I'm actively adding practice exercises and quizzes. You can check it out here: edspira.com/courses/financial-accounting Thanks for watching!
Thank you sir, really the explanation is awesome, I had a big problem understanding it, teachers taking the long way to explain something could explained in 8 minutes. thanks again.
Hi! I´m studying accounting online and I´m not the best at it but trying super hard, THANK YOU for the video, it made perfect sense, do you provide online tutorship? or know someone who does? thank you!
I have been watching your videos. My question is if you are a business owner which accounting method do you use ?? FIFO, LIFO, Average cost ?? Do you pick whichever one you want ?? What does the IRS say about that ???
In gist, it is Total Cost Price divided by the Total Units Purchased. In getting the EI, first calculate as mentioned earlier, and multiply it by # of inventories in hand. Is my understanding correct ?
In its first month of operations, Kingbird, Inc. made three purchases of merchandise in the following sequence: (1) 260 units at $4, (2) 360 units at $6, and (3) 460 units at $7. Assuming there are 160 units on hand at the end of the period. Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Compute the cost of the ending inventory under the average-cost method, assuming there are 160 units on hand. (Round answer to 0 decimal places, e.g. 125.) Can someone please help... I am so unsure what part I am missing??
So that mean, under the average cost method, the flow of costs through the accounting records will exactly match to the physical flow of goods through the business?
Priscila A Under average cost, whenever a good is sold (and thus flows out of the business) it will be assigned a cost that is the weighted average of the purchase costs of the goods that are in the inventory. If a company wants to have the cost of each item exactly match its purchase cost, it would need to use the "specific identification method." However, to use specific identification it would need to know the exact purchase price of each item so it can assign an item this exact price when it sells the item. Since it is difficult to keep track of the cost of individual items (for example, a large grocery store might purchase multiple cases of soap throughout the year, at different prices) it is easier to just pool all the purchase costs together, take the weighted average, and use this weighted average to assign a cost to an item when it is sold. Hope this helps!
First you need to calculate the average cost of inventory. (This is total cost divided by total units) then you would multiply the average cost of inventory by 300 since this is the number of units sold. Good question!
Lets say that you buy over 100,000 different items for production over the course of a year... I assume there is software out there that can compute this for you?
9 years later and this man is still helping me pass my classes
You explained cash flow assumptions in less than 25 minutes, while my teacher barely made sense of the information in an hour and 15 minutes. So thank you!
I sit in a 2 hr long class very confused every other day and I learned SO much in less than 5 minutes. Thank you so much.
I'm glad to hear that this video was able to fill in the gaps from your class. Best of luck in your studies!
My teacher spent over 5 hours with me trying to help me figure this out. It didn't work. I spend like 25 minutes watching your videos and I understand it so much more! Thank you so much!!
Thank you for this. My instructor is incapable of properly teaching us these methods in the span of 3 hours yet you did it flawlessly in less than 5 minutes. I appreciate you, sir!!
Honestly this channel is a gold mine for aca students
Thank you for these videos! Even 6 years later, they're still finding a way to help students learn these methods. You sir are a legend :)
Helping me right now with studying for my exam!! :D
7 yrs now, actually :)
8 years later and still saving lives. Godspeed bro.
Thank you my friend. Best wishes to you and your family
I should probably mail you half of my degree
To be honest, I would mail full degree and 0.25 of my postgraduate,
8 years later and you're still helping. Thank you so much!
Bro you explained this so well, been staying up ridiculously late reviewing my professors notes confused as hell just to find your videos and find the solutions in minutes. Appreciate you my man
It's amazing how such a short video can teach you so much! Thank goodness for RUclips
I have to say a huge take you. it took me months to learn this from school, and I learned within few minutes with you
I watched all three of your videos and you explain it better than many professors, books, and web sites. Thank you.
Thank you so much!!! The way you explained it was better than my professor and what was detailed in the text book. Thanks again!!!
Happy to help! I'm glad you figured it out. Accounting can be a pain in the butt sometimes :)
Dude you the best. You should be teaching at my school
your videos make accounting so much easier to understand! thank you
Sure thing!
I should probably start paying my tuition to you than my teachers you explain it so well and easy. 💖 i hope i'll nailed my exan tomorrow. Wish me luckk
Thank you SO MUCH for making the FIFO, LIFO, and Average Cost Videos! You made it WAY easier and explained it much better than my professor did. She always moves so quickly so I thought that these were much more difficult than they actually are. Thank you for making it so easy!
This along with other videos this channel uploaded is going to be my savior for the semester, thank you very much for the help!
No problem. Stay tuned to www.edspira.com this semester. I'll be uploading exercises and quizzes to accompany the managerial accounting videos. Best of luck to you!
Don’t usually comment but your videos are so so helpful😀👍
This is the second video I've watched from you, and thanks to you, I'm getting all my problems correct!!!! :)
Still using these today. Thank you so much, taught me better then my teacher has.
Thank you so much! This is MUCH easier to understand than the word salad in my textbook.
Thank god for you! I’m doing a accounting 2301 and this part was driving me crazy. Thank
Its easy to understand how you've explained where as some peoples speech is very flowery so you dont understand all the words. Thankyou
I thought accounting class was going to be hopeless for me. Thank you for all that you do
Thanks a lot, you really helped me, please continue with what you are doing, I already have a group of friends that would love to watch these videos.
Thank you very much for putting such a wonderful video. It has cleared AVCO Method so good that now i can also explain it to others. Thank you very much Edspira. Please keep on putting more Financial Accounting Videos. We really appreciate your good efforts.
Gobind Rawat, I'm glad you liked this video! I actually have an entire financial accounting course that is available for free on my website. It currently has 249 videos, and I'm actively adding practice exercises and quizzes. You can check it out here: edspira.com/courses/financial-accounting Thanks for watching!
Edspira : Thanks alot for the information. I have already Bookmarked the link.
Time to record more COGS and pay less taxes!
how did you get 250? beginning inventory is 200
You made it look so easy. Why do they complicate it in the books and homework.. Thank you for this video
Thank you sir, really the explanation is awesome, I had a big problem understanding it, teachers taking the long way to explain something could explained in 8 minutes. thanks again.
Great efforts, I was so confused until I found your channel.
Many thanks
I mean, you explain it fantastic! Simple words, thank you!!!!
No problem!
You have made this so easy to understand. Thank you!
Is this method the same as the weighted average method?
Thanks for helping with my homework
You have a gift for explaining accounting concepts! Thank you :)
Great explanation and examples this helped!
Thank you, you explained it much better than my book
I LOVE THIS GUY
😀
This helped me so much.
Wow this makes sense to me now! Thanks!!
I was looking for this math ...thank you Soo much for this help ....God bless you.....💜🖤
THANK YOUUUUU!!!! you made my life easier
Thanks so much made it easier to understand
Thank you, so clear and understandable!
+Sv L No problem! Best wishes
Hi! I´m studying accounting online and I´m not the best at it but trying super hard, THANK YOU for the video, it made perfect sense, do you provide online tutorship? or know someone who does? thank you!
Wow thank you so much you just made this thing look so easy.
You are amazing thank you ❤️
Thank you! I got mine correct thanks to your explanation.
Btw, I'm 1st-year college taking up Bachelor of Science in Management Accounting. 🙃
I have been watching your videos. My question is if you are a business owner which accounting method do you use ?? FIFO, LIFO, Average cost ?? Do you pick whichever one you want ?? What does the IRS say about that ???
I think the most important thing is the consistency principle. You must stick with the same method for all financial periods.
If you want investors, use FIFO. If you want lower taxes, use LIFO. If you want some of both, use the weighted average.
All are GAAP. LIFO is not accepted by IFRS.
If I run a business and sell all inventory on hand , will I eventually get the same profit number for FIFO, LIFO and AVCO?
All videos are so easy to understand! Thank you it comes handy during exams :) Why my lecturers cant explain everything like this?!!??!
thank you, this was great!
Thank you Mister!!!!!
Thanks, it helped!
You're welcome!
Is the Average Cost inventory Method the same as the Weighted Average Method ?
Thanks you for the video !
Incredible! Thank you so much!
No problem!
thanks a lot bro may god help you all make it better than ever.
would you be able to help out on the calculation if there is a sales return and purchase return, thanks very much
thank you very much education hero!
What if you are only given the Beginning inventory, Purchases during the year and how many shirts were sold in a year?
Where is this typically used to best effect?
What industries and circumstances?
Thank you so much so simple and quick!
In gist, it is Total Cost Price divided by the Total Units Purchased.
In getting the EI, first calculate as mentioned earlier, and multiply it by # of inventories in hand.
Is my understanding correct ?
Well explained sir, I can do LIFO AND FIFO without challenges then AVCO was a disaster, thank you
THANK YOU SO MUCH THIS HELPED ME !!!!!!!!!!!!!!! LIFO & FIFO VIDEOS AS WELL
Happy to help!
It this the same as the moving weighted average method?
How would you find the AVERAGE unit PRICE if you have balance stock from last period brought over for NEXT period?
Can we also call the 12.87 as the Moving Average Inventory?
It is very useful. Thank You
Happy to help! Best wishes :)
thank you so much!
Thanks a million!
Thnk u so much for yr help..god bless u sir
Waaw you are life saver thank u so much sir
How does it effect the average if you have a beginnning inventory
can you please give an example (may be the same example) where there is purchase returns (or please illustrate that in a replay comment)
what about deductions / returns / damages ? why not a single instructor talks about that?
What happens if I sell another 250 t shirts on a different date how do I get COGS
Thanks sir really helped me
No problem!
Your videos saved my life 🥲
thank you
No problem!
cant you also just subtract the COGS from the total buy cost for the EI?
In its first month of operations, Kingbird, Inc. made three purchases of merchandise in the following sequence: (1) 260 units at $4, (2) 360 units at $6, and (3) 460 units at $7. Assuming there are 160 units on hand at the end of the period.
Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.)
Compute the cost of the ending inventory under the average-cost method, assuming there are 160 units on hand. (Round answer to 0 decimal places, e.g. 125.)
Can someone please help... I am so unsure what part I am missing??
THANK YOU SO MUCH !
Thank you...just.....thank you.
No problem!
Thank you!
No problem! Good luck with your classes and have a great summer!!
So that mean, under the average cost method, the flow of costs through the accounting records will exactly match to the physical flow of goods through the business?
Priscila A Under average cost, whenever a good is sold (and thus flows out of the business) it will be assigned a cost that is the weighted average of the purchase costs of the goods that are in the inventory. If a company wants to have the cost of each item exactly match its purchase cost, it would need to use the "specific identification method." However, to use specific identification it would need to know the exact purchase price of each item so it can assign an item this exact price when it sells the item. Since it is difficult to keep track of the cost of individual items (for example, a large grocery store might purchase multiple cases of soap throughout the year, at different prices) it is easier to just pool all the purchase costs together, take the weighted average, and use this weighted average to assign a cost to an item when it is sold. Hope this helps!
thank u u explain best
bless u
Thanks
I also get free inventory. would I just add these free units and come up with a new average?
how would you calculate COGS if you are not given just 1 number of sales, it says on mine sold 200 units @ 350, and 100 units at 400
First you need to calculate the average cost of inventory. (This is total cost divided by total units) then you would multiply the average cost of inventory by 300 since this is the number of units sold. Good question!
thank you for the video
No problem!
Lets say that you buy over 100,000 different items for production over the course of a year... I assume there is software out there that can compute this for you?
Yes, all large companies (and many small companies) use software to track inventory
Thank youuuu soo muchhhh♥️
superbbbbb
Thanks 🤗
Note : you can calculate cost of goods sold at the end by The total costs - the cost of ending inventory
Good luck 👍🏻
how did you get the 250?
It was given in this problem.
I was trying to understand where the $250 came from as well. Can anyone explain please?
I went back and watched again, I understand now thank you very much.
@@lisaok4729 where did it come from
what if unit sold is not given