you know what up what up what up squad this is CPA strength Who am I I am the
strongest licensed CPA in Florida what do you do seek safe drinks I teach the
accounting I teach the world accounting basics that's what I do over here
building blocks one little step at a time that's how we get it done here
let's go man I want to grind I'm on the grind I can't be stopped
I ain't burning out because I love this let's go what are you doing today what
are you doing today today I'm doing accounting for beginners so this is my
class exchanges but junk classics it's a class exploit you ready all that drama
law outside your own will get it out get it out we're going to be learning we're
getting smart here we're better our future we're trying to get some chippers
up let's go you're always wrong without me I'll be
learning right now let's go we're doing number 45 accounting firm again is
number 45 in inventory perpetual we're doing a summary we're going to summary
of our last three videos but hey if you haven't seen those or any other ones and
you're new here I know you've been binge watching but if you happen to be new
here this is the playlist there's a card to the best playlist in the world
that's the playlist in the world it'll let you do anything you want in life
just watch that so let's go what you said it's a summary yeah bro yeah yeah
yeah yeah this is a summary mate what are you going to summarize this is what
we're going to summarize first-in first-out fight felt lesson first out
light fell weighted average which is just the average all three of these and
see the difference now the average the average I think is kind of simple we're
still going to briefly go over that but it's kind of different than FIFO and
LIFO and now I always say don't abbreviate but this is our third video
I've read it out so now send you know what these are now we can start
abbreviating because we need to go a little faster this the summary of our
last couple videos is basically going to be mostly on FIFO and LIFO and the cost
the Cup you know what happens to the cost this year the inventory this year
the net income this year between Plato and wife Washington Parham and the
summary is really a little dig deeper the summaries are how I got good at
accounting I stopped worrying about that this is taken forever and I just I just
figured of different things take different times I'm going to learn this
so I just didn't worry about how long it took I liked if it would take me a
shorter time to learn something but in summary is basically me going through
when I was learning this stuff five ten years ago five five years ago or six
years ago when it started clicking into my head is when it started clicking in
my head is when I learned the dca learn you know time up in system I started
using a DC a blur and then I started like just going the extra mile the extra
mile being this up here kind of you know or or doing this doing that basically
doing this you know and then then making like a nice little summary page that
makes sense in my head because I wrote it it's my little summary page now I use
that to accompany homework problems and if I keep getting the homework problems
right that means my basic formula you know with what what cost more and less
and to the inverse of that so my formulas are correct if I'm doing the
homeworks correct if I'm getting homeworks incorrect I mean something's
wrong with my basics we have about what formula or something's wrong so I always
like to do lots and lots and homework even though if it's if I so
called too easy for me nothing's really too easy for me I learned a lot from a
very beginner asking a question which is funny because a beginner doesn't know
any doesn't know why it shouldn't be or why it isn't it's just mmm I like it
because it beginner intuitively like you know I teach beginners online here and
YouTube so I get questions from beginners well why isn't this you know
why is it a truck and expense you know and you're like oh you know just
something something will deal with it after a while so anyways we're going to
summarize let's go it's to the point now where I've done a lot of talking I'll
lead in right now probably five minutes so you got to get in to me we're going
up we're going to do some ring and this is how you would value an inventory and
a lot of problems I remember taking is like they'll tell you you know how would
you value the inventory for sale and then like and another other questions to
do journal entries and stuff it would be you know we're we're valuing the
inventory by LIFO and / / widget it's you know whatever ten twenty dollars
like they'll tell you how much the inventory is so that would be a really
big problem have to figure out figure out what then what how much the
inventory is and then have a journal entry of selling and buying it
we're probably going to run through some of those problems
alright let's go through the summary I'm going to ha I'm sorry I I won't talk
about my Harris to take my hat off right boo touchdown let's go dang I haven't
got a bicep shot a little bit mmm let's go with the difference here so all
the facts were the same we bought one plus we bought a widget for $10 you
bought a widget whether it's fight fold lightful or average I'm still facts
remain for our inventory we still have always 60 in our inventory here as we
bought in January 1 and waited for $10 February by widget for $20 March
regarding widget Caesarea dollars so the inventory is all within our what's in
our warehouses all the same amounts it's just how are you what's coming out
and a big thing of this we're trying to really touch on before which came to
italics we go easy with one selling one with that time but the thing is what
happens when you start selling two widgets at a time you know if you sell
to how much is how much does each one cost because each one you bought one you
bought one for different and you're selling to and you don't know which ones
you're selling so you have to either do a FIFO and LIFO or an average say if you
start selling to in our examples we sold one so you're like well I know it's what
I'm selling anyways let's go so if you have 60 60 in your inventory no matter
what all facts are the same here here's where our facts start to get different
and let's let's figure out let's figure out the cost of been sold in the
inventory and then I'll come back first in first in first out let's figure out
the cost of goods sold in inventory of the first in first out alright first in
was the January and that's the first out so first in first out right here that's
our cost of goods sold okay cogs right here cause
so that means all right is first in first out that was the first in that's
the first out cost of goods sold $10 because that's how much the good that we
sold cost in our inventory $10 so we had 60 in our inventory that's what we
always have inner beginning inventory I should have wrote that down but we don't
let from our past once ever used to say 60 every gaming tour so we got rid of we
got rid of 10 60 - 10 60 minus 10 is 50 also you could look at will inventory
doing inventory now what it what is there in our inventory a 20 plus a third
years left in our inventory up to 50 that's our inventory is a 50 and
inventory 50 right here you might see that you have inventory you sell
something so whatever is left is still your inventory just you know I want you
to see things are here's are doing the summary let's go to LIFO last in first
out which would you last one the last one in was the one in works so that
means it's the first out okay so right here this is our cost of goods sold here
at the 30 30 custom it sold for LIFO cost of goods sold costume is sold 30
what's the inventory well we know beginning with 60 60 minus 30 is 30 the
inventory or you could just simply look in your picture what's left here what's
left after you sold this for 30 so what's left is a 10 to 20 that's your
inventory so 30 to our inventory all right you got that so you know you're
going to start once you know it you can just do like a king my original tight
fold life over here oh like a empty number 11 or something I spent really
fast and that's what I would do on if I would get a inventory if I have to value
if I would have to do a light 4 or 5 for average question or welcoming CPA exams
they're asked a lot of times was like well what's
both due to the net income you know we're raising that income we're lower it
or what about next year or did you next year so I would just do really fast you
know frightful in ten twenty thirty ten twenty thirty and then I would sell I
know fight well first one boom and then I would circle these consummatory so I'm
going to real fast and then I see that now we're back to the summary when
comparing to trance fight for life up we figured out cost of goods sold inventory
right we figured out that what it's like let's go to the extra mile what does it
all mean here I know what we can do real fast let's figure out the net income
let's think logically here I don't think logically costs are down
here does they have more inventory so the costs are down inventories works a
lot more of the costs are down alright so costs are down in FIFO inventory up
all right I'm putting arrows next to these my good going verses over here
look costs are up over here costs are up over here that means our inventories
down okay so now well let's think about it if in FIFO your cost your costs are
down in fact it costs are down if costs are down that means your net income
would be up because what is net income net income is revenue minus expenses
okay we're not talking what are we talking we're talking right here we're
talking our expenses our costs are down so that means our profits up our net
incomes up cost down profits up just think more logically think about
anything you know widget selling widgets that's what we're doing because the
widget can be something that you personally sold so what is the widget in
your head all right where was I that was good right it can be anything like
whatever you sell that's why we're doing widgets whatever what you want your
video but they go on to something here let's
go over the light bulbs and filete goes on to something
stay with me stay with me to discover minutes life Oh is what cost
cops are up if costs are up that means our net income is going to be down so
kind of has inverse relationship right cost down and income up
coughs coughs up and come down now that's this year what happens next
year I wanted your little side piece this is what you ought to think what
happens next reflects one life well what happens next year I'm almost out of time
so I got to go fast look up here in the top right hand corner here look you've
got to two inches left in the resistance for next year
50/50 inventory for FIFO thirty and LIFO divided by two so 500 25 per and in
lightbulb it's 15 car widget so next year
look these are costs right are these are cost yet these words are in inventory so
next year is going to be our cost of goods sold if we sell these first is all
we have
you know bro we're going to a life or FIFO or average wherever so it's crazy
but anyways it's like laugh now cry later because look if they cost if they
cost more or less next year that means whatever cost more whatever cost less is
going to be so look you're going to make light bulb cost less so next year next
year because next year you're going to make more money because let's say you
sell these two let's say you get 100 tripperz 100 tripperz next year off this
LIFO only cost you 30 so you make 70 next year over here you make 100
chippers where you have 50 in here see only make 59
here damn camera just shut off on me like that I couldn't have it I couldn't
have it okay so that's so that's next year so see this year saying it's a
laugh now cry later kind of thing with with a accounting and you'll notice
especially with like inventory and cost of goods sold and their income it's like
they always kind of reverse like make more money this year make less the next
year and it's kind of flip-flops to us and forth what's great about accounting
sometimes like on a question of like what would you do to correct the error
and you're like I have nothing time will correct itself and they're like you're
right now's like okay but this year in FIFO you wouldn't you would make more
money your income would be higher you would make more money next year would be
lower
LIFO this year you make less money ah next year you make more money so it's
the inverse anyways I don't really know what I got for to try to motivate you
guys man you're with me anyways I'm out here grinding about her going hard
people worry about me bar now ain't gonna happen I love this let's go so I
see you next time deuces