yo yo yo what is up family my DC ADE LER crew my AFB family
let's just go I got a lot of stuff to do Who am I
yeah who are you breath well I'm like a counting bra a counting bro
I'm CPH strength I'm the strongest CPA in this data floor I'm a licensed CPA
let's just go let's just go I'm gonna excited about this one look I spent a
lice pencil extra time setting this up if you can appreciate that give me a
like give me a like because it helps it helps the channel more than you know
unless you're a YouTube creator and then it's like it's crazy because the more
the more views and likes ensures and stuff like that I get the more viable
that the more more videos I can make the better videos I can make so let's go I
love doing this too so I really am excited about this one I think is
treated this one well let's just get it into this okay also if I know you've had
been what binge watching happen to its Ocala binge watching but if this happens
to your first time in like this guy seems okay I don't know up here I'll put
a card to the it's the best playlist in the world
counting playlist for beginners I hope you do whatever you want in the
accounting field all you do is just watch that anyways let's get this in
okay ooh you know me I gotta get I gotta get
the the pen in the hand there's a kind of for beginners number 42 inventory
perpetual like isn't it perpetual inventory no I just switched it okay I
just asked permission and I got it mmm zone me I'm the mayor this anyways
always I'm the mayor that's in the internet accounting stuff I'm just
saying so it was worth Perpetual this one is
going to be first in first out you're like oh my god I probably never heard of
that this is something new first-in first-out i've never heard of that no
you have everyone just says FIFO and you have no idea what it means and when this
is light for FIFO and that's I'm uh I even did that in an earlier video so
we're going to really explain these out now and I'm excited to do this let's go
so inventory perpetual we know we know from earlier videos that perpetual means
you're keeping up you're keeping up with everything you're keeping up with your
inventory your cost of goods sold just keeping up with your sales we cost of
goods sold your profit your ending inventory per sale okay or per day you
know if I guess per sale you're just you're keeping up with it
now my example is we we buy and sell one one item okay
and that's we buy and sell one item in my night and I you know when I buy it
for ten twenty thirty like round round numbers and we don't widget because
we're just we're just we're just imagining things you got it you have
some creativeness and imagine some things that's why we're using widgets
for this because it fits the marketing plan perfect it is you know in real life
some of this wouldn't actually happen the prices and and stuff like that but
the widget is good so it's just going to learn this is I think I'm I'm excited
about this one so let's go so I do it oh I have in simple terms so that when you
get a problem in the book if you if you're I guess just the basics if your
fundamentals are correct with buying and selling one item then that's really the
same mechanism gel for sales cost profits and and ending inventories
if you deal with one and one and two and then three
you can always bigger and bigger and bigger and then do millions and millions
because it's computer software and stuff so okay let's go first it so anyways
this is going to be here here's here's the thing in January you buy one widget
for ten dollars okay you put it you put it in your put it in your warehouse okay
then in February you buy another widget buy one widget for $20 so then you throw
that widget in there okay I don't know why I should have there's one widget
alright then this is the February widget two widgets and then in March you buy
one more widget for $30 so I got three widgets in there alright I got three
widgets inside my office okay or inside my warehouse so I got three I
guess three widgets there now I bought them for different prices because I
bought them at different times there's been insulation this is kind of really
but it really does happen I guess from your ear like a product I guess will you
buy you know in one year it's a 30 cents apiece now the product is 32 cents a
piece the next year and we're doing millions of that it really doesn't
matter but we're just doing one to illustrate the point of the fundamentals
so if you bought them all for different prices now
alright so January bought one February bought one March about 110 20 and 30
dollars pieces alright so that's that's kind of our that's uh our facts here now
May 1st so cut a mark April April he just you
stop you stop getting stuff you're like oh yeah I got to do this
so May May first you sold one for $50 alright can you believe it
they finally sold one for $50 wow that's great so you definitely made some profit
right now we're just going to figure out we're going to figure this out here
we're going to figure out the sales so for this information because we're doing
perpetual so we're going to figure out we sold we've sold one widget now we're
going to figure out all the stuff all the stuff being sales the cost of the
goods sold the profit on this transaction and ending inventory okay
sales $50 I'll start you out why don't you put it on pause here and see if well
you can do it to one I mean this is this immediate if you do what you want buddy
put it on pause and and see if you can figure out what the cost of goods sold
are the profit or the ending inventory if now yes we're going first-in
first-out I'm sorry I don't politics I didn't tell you so so that's the thing
so the sales you don't have to pause whatever you can do what you want to do
so in sales and $50 cost of goods sold well how much did that cost
well I don't know it costs 10 $10 or which one did we sell the January
February March widget because that matters how much the costs of it was so
now in lines how we value evaluate evaluate or evaluate the inventory so we
have these three widgets in there but with three s you can tell which like you
can label it or somewhere if you have a million a million widgets in this
there's there's no way you know you can tell that which batch for this one it's
you got to do evaluation like this now we're going to first in first out
so first-in first-out would be the first truck the first whinge is the first
three widgets the first widgets that came out the first widgets that came in
which would be the January widgets the first widgets that came off off the
trucks in into the warehouse would be the first ones that you would sell or
the first out so the first in first out so we're doing first in first out so why
don't we say what was the first what was the first one in the January widget was
the first one in so this is first in right here the January and what was the
first out the first out would be the first in so the January so here's the
one we sold in this method the first in the first out we sold this one here we
sold the $10 we sold the $10 widget so I mean cost of goods sold $10
all right now we're just now we're just knocking this out that was the hard part
that was the hard for a pair of the FIFO profit okay sales minus your costs we
made profit of $40 okay now how much is it our ending of
ending inventory well I don't know what was in our beginning inventory beginning
inventory was three widgets these three widgets how much was it it was 10 plus
20 10 plus 20 plus 30 10 plus 20 plus 30 is 60 so that was our beginning
inventory with 60 all right that was our beginning inventory how much inventory
did we sell we sold we sold 10 inventory we still cost a good sold 10 inventory
right here so our ending inventory so yeah so first in first out $10 is the
cost of goods sold all right so you still have the $20 and the $30 in your
inventory so those two which is 50 is your egg inventory I hope you like that
I'm running out of time my camera's about to shut off anyways the the love I
got from my 20,000 subscriber and thank you video was overwhelming to me and but
I if I vote agree to good because I'm going to be I'm going to be here I'm
going to be here Monday Wednesday Friday give me new accounting videos I love
this this is this is my thing and I'm here for you so if you like the
accounting great that's what's really here for if you like the grind that
drives the hustle I'm here for that too and whatever just leave a comment down
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