1 CPE 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
- Accounting Review: The Basics of Debits and Credits
- Transaction Analysis, T-Accounts, Debits and Credits, and Trial Balances
- Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow
- The Accounting Equation and Financial Statements
- Bank Reconciliations, Cash, and Internal Controls
- Accounts Receivable Training: Bad Debts
- Equipment and Depreciation
- Inventory Costing
- Purchase and Sale of Inventory
- The Adjusting Process
- 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
42 Reviews (164 ratings)
Reviews
Susan McKee
( at SHM LLC)
Very complicated lesson. Loved the worksheets to work out the numbers on.
Anonymous
(CFO)
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.
Anonymous
(Bookkeeper)
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.
Sean McBride
(Business Technology Services Partner at EKS&H)
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.
Anonymous
(Inventory Accounting Manager)
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.
Anonymous
(disabled)
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.
Vickie Jackson
(Accounting Manager at NewStar Sourcing and Service)
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.
Anonymous
(Revenue Accountant)
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
Kevin Murray
(Business Partner - Strategic Projects at The Wesson Group)
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.
Scott Earley
(Accountant at Charter Communications)
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.
Anonymous
(GL Manager)
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.
Lawrence Hirsch
(Controller at Builders design)
Thanks Erik. It is always helpful to have to computer the Lifo, Fifo and average cost methodologies. Great review.
Larry
Anonymous
(Senior Accountant)
This course was very easy to follow, and the review questions allowed me to practice my understanding. Definitely recommend!
Anonymous
(Consultant - Process Specialist)
This is a great course for those new to accounting concepts, or for those who have forgotten what they learned in college.
Anonymous
(AM)
The lecturer is is very good in explaining the subject matter and gives good examples which makes underrstanding easier
Anonymous
(Senior Accountant)
Great review of FIFO, LIFO, Average Costing inventory valuation methodologies. Well paced & explained presentation.
Anonymous
()
Great refresher after a break in studies. The specific identification and continuoys inventory is nit covered thou.
Anonymous
(Consultant)
The illustration is easy to understand. Overall, it is helpful in understanding how basic inventory costing works.
Anonymous
()
Great job! Excellent course. Thank you very much. I appreciate the informative course. Great questionds!
Charles Elwis
(Insurance Broker at Health Guys)
Good explanation of the various methods of costing inventories. The quiz was particularly useful.
Jennifer O'Neill
(Financial Analyst at N/A)
Great basic review of inventory costing methods and the advantages/disadvantages of each method.
Anonymous
(Consultant)
Erik - Thanks for laying out the three methods and being thorough in your examples. Very clear!
Anonymous
(Finance)
it was a very fun class to learn about inventory costing. I enjoyed the exercise very much!
Trisha Wright(Rinderle)
(Consulting Accountant at EKS&H)
Clear and concise teaching and information presentation. Easy to follow and learn from.
Muhammad Baig
(Managing Director at N/A)
A reasonably good course with informative material well-suited for the purpose.
Anonymous
(Senior Accountant)
Sold walkthrough of classic inventory costing approaches and comparative
Grant Brannum
(Agent at Treasury)
Good basic explanation of subject matter presented in a concise manner.
Anonymous
(Auditor)
Quick and easy to understand the 3 methods. The tree example is great!
Anonymous
(Accounting Manager)
Another good course on inventory costing. Foundational but necessary.
Anonymous
(Financial Controller)
Might be nice if there were more theory vs straight up calculations.
Anonymous
()
Great concise review course. Would recommend this course to others
Anonymous
(Controller)
Very basic information.
Good information for non-accountants
Jim Ahern
(Principal at AFM)
good basic class to review the different inventory methods
Anonymous
(CFO)
Flow of the course and the examples was well coordinated.
Paul Kane
(Consultant at None)
Great presentor, but using technology from 15 years ago.
Tracy Meehan
(- at Mercedes)
I really enjoyed the presentation of the materials
Antonio Crawford
(Senior Internal Auditor - Budget/Busines.. at Individual)
Great basic training to refresh some concepts
Anonymous
(Finance Director)
The course name describes the content well.
Anonymous
(-)
Great refresher course with helpful detail.
Steven Moore
(Certified Management Accountant; CMA at ArdentAccounting)
Very nice review. Thanks!
Tim Philips
(Controller at Self)
Good overview.
Patrenia McAbee
(Owner at McAbee Consulting)
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)
Erik SlayterAccounting Professor at Cal Poly
About Illumeo
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Contact Us
- Email: info@illumeo.com
- Phone: 408-400-3993
- Adress: 1608 W Campbell
- Av #221, Campbell, CA 95008
© 2024 Illumeo, Inc.
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,
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