yo yo yo hey what is up hope everyone is having a wonderful time right now why
who do you ask who are you man I am CPA strength I am the strongest licensed CPA
in the state of Florida what are you doing here in April
what are you doing I'm teaching accounting to the world here building
block by building block basics by basics we got a big one today we've got a lot
to do so I'm just going to hop right into this one in a second but first
here's the playlist to the here's a card to the best playlist in the world right
here best place in the world accounting playlist you can be a CPA whatever you
want just watch this playlist let's go what's in this video this video is
accounting for beginners number 46 4 and then a big 6 you're going to love this
one you're probably going to come back to this one because there's a lot of
action this might be intermediate you might not be to this level yet this is
your first one start a 1 come on back and by time you get to this one you
should be able to crush it there are some new concepts in this one some new
concepts some old concepts a lot of things together let's just go
this is inventory perpetual number 46 from the 40s I think we've done a lot of
inventory flow skill inventory pets will read we're going to take care of it as
we go take care everything as we go and this one we're going to first-in
first-out journal entries we're gonna do some journal entries here fight foe
journal entries we're going to do journal entries we're going to buy and
sell widgets by it's all legit certain widgets per cost and then we're going to
be we're going to make some journal entries we're going to journal train
February March April May and June
let's just look over let's just look over this for a second right now we have
two two journal entries in February two journal entries in April two journal
entries in May what's happening in February February April and February
we're selling we're selling widgets April we're selling widgets May we're
selling widgets so whatever we're selling we're just in a perpetual system
in potential inventory we're going to have to two journal entries per would
have two journal entries per transaction per one transaction so let's get started
January you have in your inventory you have a thousand you know a thousand
widgets like tops-20 hold on hold on hold on I gotta get my catherine's is my
calculator I got this sense I was studying for the CPA exam before was
acting in college I had it Oh anyways it's big bit right up here I used to buy
on an old co-worker when I actually worked in latest in corporate world
co-workers saw this corner ovens I had at work and he was like it was like he
was a CPA a great guy he's like probably my mentor taught me the most stuff was I
have a dog at home or something I was like I was like yeah he's like this
morning laughs his wine so let's get the calculator alright so in our inventory
we have a thousand units a twenty one thousand times twenty
without $20,000 worth of worth of widgets our inventory good around 20k
2010 which weren't us rock dish those maracas let's do this when we pump it
some widgets let's go let's go I got a sound like a $20,000 a we just have
ourselves some okay February 7 700 which it's
seven hundred units of widgets like $30 a pop all right let's go let's sell
let's sell it so if I'm selling it I'm getting money all right how much am I
getting I'm getting thirty times seven hundred thirty times seven hundred
twenty one thousand I'm getting twenty one thousand catch let's pay our debit
because I'll see cash is an asset and it's going up because we're getting it
so that's our drive it what's our what's our credit going to be well it's going
to be twenty one thousand and we sold which I'm going to do for for our money
for our business so team via sales of revenue that's going to be recurrent
twenty one thousand I'm going fast in these journal entries especially I'm
going to go fast in journal entries until we get down to April because
that's where the crux of the problem is but anyways let's go now this one is new
for everybody okay we're perpetual I just wanted to
make notice note this before we were selling something how there's two
journal entries for every transaction because we're keeping up with this and
we don't have when we first bought the inventory we definitely we we definitely
inventory credited cash so we just create an asset for assets there's no
expense on the books for this perpetual system so we've got to take the
inventory off right we're going to credit the inventories we're taking it
off and in in Torun asset so negative assets of credit we're taking it off and
have to put our expense on here the cost of goods sold or expense so that's
consequence olds of inexpensive debit right here so that's going to be so it's
going to be for the costs right cost of you taking the inventory off for how
much it costs cost of goods sold well how much did it how much did the
inventory cost well this was what was in our inventory our $20,000 for our 20th
pot alright so we just sold 700 and how much did these 700 cost us we sold it
for the house it cost us $20 so seven hundred times twenty dollars
fourteen thousand fourteen thousand dollars our debit in our credit debit
Costigan solar fourteen thousand credit inventory fourteen thousand can y'all
going fast but we got to go we got to go a lot of information in this video we're
going to march now we're in March what happened in March we purchased five
hundred at 22:40 okay we purchased five hundred times twenty two point four
11200 we purchased here here's what we did here is what we did now we're
getting more in the books seeing the purchase so we have cash
leaking 11200 that's our credit what are we getting we're getting wigs rehan
rhetoric that SAR debit 11,200 okay not only fast but hey we gotta go we're
going to go we're going to go we're going to go we're going to make money
even going to need let's go April April so anyway yes we purchased we purchased
these in March so we purchased five hundred so what at 22:40 what's in our
inventory right now our inventory in April we're going into April this is our
inventory okay now now where's the problem that's what I've been trying to
go fast so this is this is the main part of the problem right now I really need
you for the next five minutes now this is the crux of the problem this is what
we're doing the problem everything else is pretty much just leading let's go you
know this is the first in first out what's in our inventory we have three
hundred codes we had a thousand we sold 700 we have 300 inventory at $20 cost
now we just purchased 500 more in March at 22:40 so we have a total of eight
hundred three hundred and twenty dollars five hundred and twenty two forty that's
what sort of inventory April we sell three hundred and sixty widgets at $30
piece so let's take care of let's take care of the easy stuff sell sell I'm
selling stuff so getting shivers so give me a debit cash
right let's see where are we where in April April debit cash yeah how much 30
times 360 let's go 30 times 360 equals 10,000 800 yet debit cash ten thousand
eight hundred and that's for selling widgets oh I know that's the Christ can
be sales 10800 boom that's our first one so now
that's our silver shell in something we need we need to have an expense and get
that inventory off the books because we're doing a perpetual system so
there's April our second journal entry and this is like a heart this is the
hard one because well not the hard one with the fun one but the interesting one
the interesting one now because we're in April now we're in April and we sold 360
units okay but in our inventory we have some units some units that we got for
twenty and then some units that we got for twenty to forty so which out of
these and are all just in a big bin they're just widgets you can't really
differentiate that they all look the same so this is how we you know they all
look the same to know which ones you're pulling out actually we're going to fill
the lists are going to gold so we're selling 360 so which which ones are we
doing which you know which which 360 are we selling out of these or how do we
know to value how do we know how to value this the 360 widgets what do they
cost for this because we have to do a journal entry and get up the books and
get our cost we're trying to get our cost of goods sold so how do we know how
to value that you would say how well how are we value with how are we valuing the
inventory C is going to slow down how are we value in the inventory first-in
first-out what was the first what was the first in our inventory hold on one
second
I noticed my lips getting stuck in my teeth way how many ways go or whether I
were having too much fun here I'm loving this go burn I know I was on something
good right tell me something good
brain fart or I know as I was explaining this and which ones are we selling we
have 360 which 1000 how do we value in the inventory we figure out how we're
doing first-in first-out that's how we're figuring this out so what was the
first what was the first items in our inventory these 300 so those are the
first outsourced own 360 well we're still on all of these so 300 times 20
and 6000 that's how I get these this 6000 this is the this is 300 that we had
at first then we're selling that we need as we're selling 360 so we have to sell
60 of these at 22:40 so 60 times 22.4 equals 13 44 and that's how I get this
this is 300 and this is 60 360 so anyway that's how I get the 7044 that's how I
value that's how this is valued right here seven thousand three hundred and
forty four word I'm definitely um I was going to I had plans to do these left to
do main June but I'm going to do these in another video because the crux this
problem let's get let's get so I just want you to seal tab we have a couple of
minutes I want to spend how how this can't help 73 373 44 came about how did
we get that now you know it's a significant cost
will well like debit and credit I hope we know that but why why did I pick 300
why did I pick 300 of these all of these why did I pick all of these and then 60
of the ones at 22:40 because we're doing first-in first-out
so the first one that we had in was 300 of these so we're going to sell we need
to sell 360 so definitely all of these and then 60 because these were the first
in and this was the first out so that's why all of these first so that's six
thousand so six thousand plus plus 60 of these five hundred so we have four
hundred and forty left in our inventory all right but that's that's how we get
so 60 at twenty to forty because we don't we've already sold this is all we
have in our inventory analysis we've sold 300 of the ones at $20 so they're
all gone then if you're okay look if you're really dying to get ahead and
going in demand leave we have we have 440 in our inventory and then we sell
240 more so we have 200 of our inventory I believe then we're going into June and
we buy 600 more inventory so 200 foot 600 equals 800 in the inventory cuz I'm
going to check my math and save the you hundred is what you get your inventory I
don't know but anyways I'll be back with more
videos love doing this so then if you're going through a rough patch just keep on
going because things are a temper in this life I'm telling you things are
temporary you get real happy to get real high you're going to come down you get
real low and things seem like they're never going to get better and just keep
on keep on something something will happen it has to get
better it's always darkest right before the Sun starts shining remember that
deuces