In this course, the basic concepts of inventory costing under the FIFO, LIFO and Average Cost systems are presented along with examples of each, using two separate layouts for calculation.  Also, a discussion about the impact to the Income Statement and the Balance Sheet under each method will be presented.

In this course, the basic concepts of inventory costing under the FIFO, LIFO and Average Cost systems are presented along with examples of each, using two separate layouts for calculation.  Also, a discussion about the impact to the Income Statement and the Balance Sheet under each method will be presented.

Course Series

This course is included in the following series:

11 CoursesBack to the Basics: Accounting Fundamentals

  1. Accounting Review: The Basics of Debits and Credits
  2. Transaction Analysis, T-Accounts, Debits and Credits, and Trial Balances
  3. Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow
  4. The Accounting Equation and Financial Statements
  5. Bank Reconciliations, Cash, and Internal Controls
  6. Accounts Receivable Training: Bad Debts
  7. Equipment and Depreciation
  8. Inventory Costing
  9. Purchase and Sale of Inventory
  10. The Adjusting Process
  11. The Closing Process
Learning Objectives
  • Discover basic concepts associated with inventory costing
  • Recognize how to perform calculations on a sequence of inventory purchases and sales under the FIFO system
  • Recognize how to perform calculations on a sequence of inventory purchases and sales under the LIFO system
  • Recognize how to perform calculations on a sequence of inventory purchases and sales under the Average Cost system
Last updated/reviewed: August 10, 2023
40 Reviews (162 ratings)

Reviews

5
Anonymous Author
This course is a great overview of the inventory costing methods. The calculations illustrated by the instructor are logical and easy to follow. The instructor wants to make sure the calculations stick in the exam questions, which are fun! I just dropped mine in an excel spreadsheet and bam! Erik Slayter is an excellent teacher and I seek out his courses.

3
Anonymous Author
This course was really basic. If you know nothing about inventory costing, then this is a great starter. It's been a VERY LONG TIME since I looked at inventory costing methods. I didn't learn anything new. Examples are easy to follow and reinforce the concepts.

2
Member's Profile
Was much more basic than I expected. Only take this if you have no experience with basic methods of inventory costing and if you are interested in learning how to manually calculate gross margin under FIFO, LIFO and Weighted Average.

4
Anonymous Author
This was a very basic course but if you needed to know how inventory costing is done at the basic level it is a great place start. The examples help nail down the three methods of costing inventory.

5
Anonymous Author
Course was well presented, and the teacher does a great job in explaining all concepts of inventory costing. He also does an excellent job with advantages and disadvantages of each cost flow.

5
Member's Profile
Excellent review course on the different inventory costing methods. Working through the same problem with each method really helped explain the differences between the methods.

5
Anonymous Author
Very straight forward with the examples used to describe each of the (3) costing methods. It was good practice for a concept I do not usually see in the day job. Thanks

Member's Profile
A good course of some IN basics. The instructor does a good job of illustrating the entries needed to grasp the different methods of accounting for inventory.

5
Member's Profile
I thought this course was very interesting and helpful. I thought the instructor explained the topic very well. I would recommend this course to others.

5
Anonymous Author
Great course to review the basics. Nice review for me since I hadn't touched inventory costing since studying for my license a few years back.

5
Member's Profile
Thanks Erik. It is always helpful to have to computer the Lifo, Fifo and average cost methodologies. Great review. Larry

4
Anonymous Author
This is a great course for those new to accounting concepts, or for those who have forgotten what they learned in college.

5
Anonymous Author
The lecturer is is very good in explaining the subject matter and gives good examples which makes underrstanding easier

5
Anonymous Author
Great review of FIFO, LIFO, Average Costing inventory valuation methodologies. Well paced & explained presentation.

5
Anonymous Author
Great refresher after a break in studies. The specific identification and continuoys inventory is nit covered thou.

4
Anonymous Author
The illustration is easy to understand. Overall, it is helpful in understanding how basic inventory costing works.

5
Anonymous Author
Great job! Excellent course. Thank you very much. I appreciate the informative course. Great questionds!

5
Member's Profile
Good explanation of the various methods of costing inventories. The quiz was particularly useful.

4
Member's Profile
Great basic review of inventory costing methods and the advantages/disadvantages of each method.

5
Anonymous Author
Erik - Thanks for laying out the three methods and being thorough in your examples. Very clear!

5
Anonymous Author
it was a very fun class to learn about inventory costing. I enjoyed the exercise very much!

4
Member's Profile
Clear and concise teaching and information presentation. Easy to follow and learn from.

4
Member's Profile
A reasonably good course with informative material well-suited for the purpose.

4
Anonymous Author
Sold walkthrough of classic inventory costing approaches and comparative

5
Member's Profile
Good basic explanation of subject matter presented in a concise manner.

5
Anonymous Author
Quick and easy to understand the 3 methods. The tree example is great!

5
Anonymous Author
Another good course on inventory costing. Foundational but necessary.

4
Anonymous Author
Might be nice if there were more theory vs straight up calculations.

5
Anonymous Author
Great concise review course. Would recommend this course to others

2
Anonymous Author
Very basic information. Good information for non-accountants

4
Member's Profile
good basic class to review the different inventory methods

4
Anonymous Author
Flow of the course and the examples was well coordinated.

4
Member's Profile
Great presentor, but using technology from 15 years ago.

5
Member's Profile
I really enjoyed the presentation of the materials

5
Member's Profile
Great basic training to refresh some concepts

5
Anonymous Author
The course name describes the content well.

4
Anonymous Author
Great refresher course with helpful detail.

5
Member's Profile
Very nice review. Thanks!

5
Member's Profile
Good overview.

4
Member's Profile
Good

Prerequisites
Course Complexity: Foundational

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Questions and Answers(2 Questions)
Member's Profile

Can you please go over the review question. I taken and so far not understanding how the first question answer was $60,000 for Gross margin

Thank you,

Member's Profile

Sales on Dec10: 1300*$40=52000
Sales on Dec25: 1400*$50=70000
Total Sales=122000

COGS on Dec10: (1000*$20)+(300*24)=27200
COGS on Dec25: (900*24)+(400*$26)+(100*$28)=34800
Total COGS=62000

Total Sales - Total COGS = 122000-62000=60000

Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Inventory Costing6:45
Inventory Costing Methods
  FIFO (First In First Out)14:23
  LIFO (Last In First Out)10:49
  Average Cost (Weighted)13:59
CONCLUSION
  Summary of The 3 Methods10:43
Continuous Play
  Core Financial Accounting: Inventory Costing56:39
SUPPORTING MATERIALS
  Notes Template: Inventory CostingPDF
  Workbook: Inventory CostingPDF
REVIEW & TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam