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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: October 14, 2018

20 Reviews (74 ratings)Reviews

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.
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.
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.
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
Great review of FIFO, LIFO, Average Costing inventory valuation methodologies. Well paced & explained presentation.
4
Anonymous Author
The illustration is easy to understand. Overall, it is helpful in understanding how basic inventory costing works.
5
Member's Profile
Good explanation of the various methods of costing inventories. The quiz was particularly useful.
4
Member's Profile
Clear and concise teaching and information presentation. Easy to follow and learn from.
5
Member's Profile
Good basic explanation of subject matter presented in a concise manner.
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 Syllabus
INTRODUCTION AND OVERVIEW
Inventory Costing Methods
  14:23FIFO (First In First Out)
  10:49LIFO (Last In First Out)
  13:59Average Cost (Weighted)
CONCLUSION
  10:43Summary of The 3 Methods
Continuous Play
  56:39Core Financial Accounting: Inventory Costing
SUPPORTING MATERIALS
  PDFNotes Template: Inventory Costing
  PDFWorkbook: Inventory Costing
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM