Accounting Talk

Accounting Transactions

Accounting Transactions. With accounting principles the second yours which once again its transactions will review transactions test as jod transactions explained outer 20-over one more time first so assets E all sup equation his assets borrowing money you know somebody s liability or through at we the owners Chloe in the biz actually improved capital withdrawal runs expenses not only bring on board some examples.

ast are hundreds als for them should liabilities worldwide could be more accounts payable just means that we bought something on credit bought something we haven't paid in cash reliability some point we will of over transaction shows so what's in store pizza business as part of its we ask owners have twenty thousand dollars treat this to get a start so twenty thousand dollars in the czech soldiers Winehouse.

I'm weekend reliability or you recognize that actually are capital or are capital so this is your money as you bring in the business you have twenty thousand claim to the business now this is really dollar else's 20,000 you have claims because cash is over here see the equations and now guard cash and how much you have claims now now it's by ten thousand dollars a supplies.

okay so we need some different test supplies for our business we just purchased an hour will or so your 10,000 supplies now how can we get a problem on tell you or a task top just no spots this case said goss applies because we set a chronic with spike solar he ozone ten thousand dollars for those parts solo are assets tall 30,000 and then on this line equation our liabilities plus our equity total 30,000 you see everything past battles is your transaction doesn't balance.

you have not done right great see very careful University transaction let's say that payoff har supplies so you know bill and he said you already know four thousand dollars won't happen is cash will be out for awesome
okay happens to our well hey are for house so we all 10,000 more me all since house so you can see here
30 minus force about 26,000 over here and over here we got 6,000 last one 26,000 missile because our was no longer 10,000 you combine the two.

it's only six thousand okay let's say the soul thousand dollars worth pizzas day the company came in there the party by thousand dollars peace and it hits cash sold out increase cashier now one on this side to be to increase hopefully recognize that assets sale as run so that increases the proper dinner so over here borough with power involves now know it got ready is heart that we okay testing this is your business is your business so you have sales who say all min Lee Rd.

they're yours your sales so thousand-dollar really belongs to you so in reality you're Apple account eventually is going to be 21,000 right now we're still on track itself because we won't know how much sales de World War wholesale well so far thousand dollars at let's say that you pay are employing two hundred dollars okay here wage of decrease expense with the trees are capsule to dollars in expenses and rescue me out decreased dollars in cash.

know is a retired your his actions balance written balances out so this is just a quick example just certain transactions once again at hospitals over water I'm transaction usually the transaction your brain and wondering how are they going to fit on our time wage. Thanks for visiting..

Next article Journal and Ledgers, Accounting Equation, and The Specific Identification Inventory Costing Method.

Journal and Ledgers

Okay last let's continue on the lesson we talked about come equation we talked about transactions. I'll now we talk about to you Doutzen Kroes every transaction the debts must equally crafts now you can move forward with a look at our Journal week or transactions and the lectures budgets are similar to THC not be tracked the balance accounts so eruptions you to life casper and the capital letter every count of its own like blast

room to write all that forms to emerge letters right now to give you an example work right west of Route three transaction first one a the first journal entry everyone put in is the owner investing ten thousand dollars caption business so ordered cashier and we're gonna say capital or capital stock there's word of in there is a little bit just because shows that we have two different counts take place here and debt would you cast for 10,000 and Friday is over out but you always do does for and the fact that just how you doing debts are always record first and the Kress right so good cash in house just

hurts you the previous video and capital all the credit now this reference use later movies and free into their lives at next transactions lets him borrow $1000 cash cash goes up twenty thousand a are no payable goes up dat cash debts increase asset so that will increase the cash now no cable that's a liability we all that money to the bank so that's what increase with the crack so we're a bouncer your 30,000 this 30,000 pratt's and CEO uses were else just let me just look at this very quickly see transactions about of the transaction right doesn't mean it's right

these people that we've done something right that is in balance hopefully that right dollar house and the right accounts here what he say you need to make sure you keep going through these transactions your chapter test lots of examples of transactions make sure you understand how every single one of those transactions were alright look over every single day

I don't think the first mighty couple hours 23 hours ago these transactions be to make sure you really understand I think the next year we'll see transactions if you understand the first step in a sec go through me 15 minutes to 30 minutes but you wanna keep doing this for them to make sure you get your brain right I was 21 where transaction what senator by a truck and lets it rip Amy the truck is

is costing us nine thousand dollars but they were gonna here thousand dollars cash right now and we can have no cable for a house so our debt is the truck because the trucks and asset trap and I seventy for nine thousand dollars so I'll mer I said okay

cash a thousand so there's our right and then we have no here finance or frock 80,000 he finds so you're a thousand or why don't you still owe that to them we didn't rockets were 9000 how to get the truck cash and still overly thousand dollars back so at this point star yeah debits and credits how they were in relationships cash up with 9,000 here in the truck 9000 here in cash when damn with the Pratt okay so he's on the same side of the equation

the county wages because this is a massive castle that posed together just 8,000 Eagles the I'll their you to transact the transaction in are for which ok now he's the transactions that we have in Archer okay the journal tracks all transaction the drum tracks all transactions so every his actions report in the journal so not this one sec withdrew my said what's the balance cash well you could figure it out overtake what you got to go through every single transaction you Doutzen Kroes to cast and adding and subtracting day what you really would want is a large

because the ledger tracks the balance %uh each now every kill houses on letter so I have a few it was rude cash later and the capital letter so Kasler for the day here on January 1st we had cash going out and I'll so you can write your cast going up what was the one and his puppet pals: years old 10,000 your and are running balance for cash is house at this point okay our next transaction I mean our next part is transactional of Roberts okay reso there's a reference

this lesson this is the first page to the general's rules of your page 1 K so references just saying workers dollar not come well came from the gym for possible she some people GM J all Journal g1 so you but she won't do you any watched consistent but usually the most common your chairs so this is a as 10,000 from the journal page what or here reference to you're saying where does this go all this is going to be cash 11 101 robbers so we cross reference everything so we don't lose things that we know what happens as well this transaction say word come from

we overcame came from the gym page 1 the capital in this transaction a yet of so that increase so this is going to our capital here which real one so we're on January for you can see this January 1st explanation you could write in their only contributed money site here cash I 10,000 crept there and balance is and the house okay notice

balance shows that as a positive dollar whatever's in all balance for that now they would be impossible so that will balance for capital contributed capital capital stock now is pals so this 10,000 running balance is as strong as that is the normal pals for the secure just like cast this 10,000 actually it up persons were with me cash you expect to see a positive ten dollar of dollar once we own money to the bank but in this case we have a positive thousands of pounds is going to be house less look at just the first part of the next

Zack just as the others or is cash going up twenty thousand so reference at 11 here today jiang receptor this come from 101 his Robertson orange page 1 so this is Dre /url page 1 and its 1000 cash 20,000 this point years ago was moving it into this latter and then are right now we had 10,000 now we're adding another 20 house heater on point now that you do the same thing for those there will be a pleasure for most people I just woke up

without or but there will be a letter for those people and you this knows pape their real effort rock you that into the traffic this cash we worry about this one vs what you put in here once for 12 you coming from one cast is 101 and it's a reduction cash you almost half rock so it's 1000 the crowd at sonar imbalance would down to 29,000 K animosity the snow he will also go towards paying electric knows at so this is how journal entries and letters for

in a relationship between your text once again has fantastic examples above all these transits transactions the movies and the show that the journal show prolly reflect in the latter also right you love us.. thanks for visit..

Accounting Equation

Before you get started on the caption just wanna remind for accounting really is repetition especially he is not hard hard all makes perfect sense unfortunately your brain works you spend a lot of time from you can suspend

I'm one day and onlookers days this is the subject matter you look at you every single day the next probably in 2-3 weeks he going all these concepts healing powers day sunny spend an hour to go into this. next the 1 I'm pressures go through these concepts again because once you give your brain they really to make sense
is going to make your life much easier because more than likely

most you have more than one account an issue gold time passes thus that issue in this one suits your novelty on thats okay first be concept we want each is the wage you can equations states that assets equal liabilities plus at now assets are things that you know loses on once the equation liabilities as well

I'll was right still assets or what we home liabilities is well the 0 somebody else so these big hole crimes claims runners claiming in our business and equity is are owners climb on this okay let's go really simple

I'm sure everyone understand not to get think about stop watch watch the video really think about what we're trying to get across okay buses artisans with our business our own books so every business has its own calculations books sources brandis pizza or restoring our own pizza business and personally want to use my deliveries

So wanna har it will hardly be announced something we all source not be home with the cars were ten thousand dollars salon this the equations well business holes how the business get this car just here doesn't disappear and I would be great but it doesn't so car well he wage your a liability or we have we okay how can we get law we could have gone to the bank borrowing money we borrow ten thousand dollars that would be a liability as creditor be claim on that car we'll make payments

Bay financial institution is gonna come back and take repossessed right so we could have a liability per 10,000 me we also made thousand dollars solo are equation is about passes 10,000 and life will be so 10,000 now well what you personally want to put your heart into your cart business well that would be a liability out be you

Order play as you can do that you can contribute cash into your business or you can contribute assets so you've got an extra car you're not using you want to use for the business you he equity unit is right there we've got thousand owners blame and whereabouts okay because in this case there's no why don't we didn't borrow money from the bay so liabilities

an we r owners claim you'll be me peace or ten thousand dollars or ASI thousand claim people's else okay the equation works every single transaction our business we'll look back this come wage and after every single transaction the must be belts so this is really simple simple concept but now this point you realize that you got assets liabilities and equity you understand these terms inside now backwards and forwards

now buses for some all the assets were some things that we know the most common thing would be cash right businesses how their own cash savings accounts CE's checking accounts goes wrong cash cash in the cash register that's cash we talk about har building weigand supplies all his think that we are home would be assets liabilities

examples would be if we all managed to make okay.. we owe money to utility company we owe money to are employees okay because life has employees were and in a week or two later will not be called wages payable or sell repeal uses the word all askin alive believe me haptic sometime okay so we've got Accounts Payable wages

catskills the bottom and we also are we talk about callers play week really be broken-down is you 4 components we got our capital which tracks owners balance from happy you agree here we subtract
withdrawals breeding WD

the withdrawal so your your own business you can take cash out you can take cash out so you take reduce our asset and then we would have money coming out so two dollars on it company business you traction dollars in cash over here huge one dollar withdrawal because reduces the Acme your your business because you too meow

a we have revenue in the business that increases and expenses your expenses decrease are okay so revenue is well we bird money that you're from doing where our businesses in our case is Peter we sell pizza and salad means things like that so we're selling that run expenses will be those things that we pay our so gas for the car page chiles we've wages to employees those are all expenses and the reduced profit this is right revenues increase our profit expenses

decrease our pop now in other videos can explain more in detail about this okay right now stop he capital well only contributes to the business on robbers samples car ten thousand dollar car your capital One Cup als K all you take how revenues is that sales profit venture and expenses as well reduces our the company okay so acid for this to you or videos for this first chapter so you make sure you go through all these videos your pocket watch these videos times to make church understand all these concepts and also usually you same time right lot him. Thanks for visit..

The Specific Identification Inventory Costing Method

What's up guys in the last few presentations were looking at how journal I certain transactions involving inventory but a misprint this recurring injury cost much gas do you theory know what that number cost of goods sold its going to be because normally

I give you something like this raise the cost of goods sold its 2008 that does not happen what you are actually have to do with your ex gonna have to calculate cost of goods sold using I cost flow assumption or some type of map it's come up with the cost of goods sold and %uh plan to anytime if you want you can acquire subscribe to us by clicking man rotation and the courts can also sign up by means notes .ca so let's go ahead and starts on this presentation now remember that

I did usually say that cost good soul was a certain amount and now we would Journal eyes that but this is not happening number does not just magically appear for you in the real world and thats I you're actually gonna have to come up with this number so basically periodic and perpetual inventory systems they brought do you a final inventory counts you know how much they have on hand so on when we have customers coming in they're coming in and they're their perch scene is good that coursed what everyday purchases known as cost of goods sold and be any inventory this is what we're gonna counts

over here this is all the stuff the run account for the and inventory and essentially whatever we have left is going to be reading inventory that is going to keep her dog be inventory on the balance sheet while the cost of goods sold is going to be an expanse on the income statement so it's actually a rate that income statement and the inventory is going to be a course on the balance sheets that is how it works and we're going to cover in three different ways to figure out how to find cost her inventory costing the first one is going to be a pretty simple matter it's called specific identification no that's what the title is at the top we also are going to be covering paper which is first in first-ever inventory costing and of course something called B average cost method so let's go ahead get rid of all of this and actually look I did specific identification scenario so I'm I can actually probably keep bees used to graphics up because it is relevant

so we're talking about so what say that's on that specific identification what this not that is is that so we are going to mark we're gonna mark tag or essentially but a code on every inventory a Down and its in our in our business at retail and normally the specific identification map it is going to be for big ticket items because you can just imagine it creates a good I attack on every single item every soul thousands of items at a retail like wal-mart it would be just a ridiculous retail nightmare so usually these are her big ticket items may be like huge LCD TVs are maybe cars

are essentially anything that has a ha very high sales grace and what's gonna happen is that you should be is inventory items are going to be martz with a cost so they will how one of those little well tags on that says maybe like five thousand dollars or them I just how a bar code on eyewear

you know how it goes all those couple 1010 1010 Ste and then I it'll be scanned and of course the price will come up and essentially they're gonna record all because up everything they sold so maybe maybe this first its first thing that they sold right here maybe that was for I maybe I was for two thousand maybe the second one was for maybe the third one was for 5,000 so in this case our cost of goods sold would be seven thousand five hundred dollars and we would report that's I as a journal entry and then of course

I carry around to be income statement has an expansive man what's safe we started there where with ten thousand dollars the inventory that we tag and of course our cost a good soul is seven thousand that means we're gonna be left with 25 dollars a banking and mentor and of course will double check this why do you mean I'm inventorying inventory counts we always do inventory counts for both perpetual and the periodic system so the perk so the subsist specific identification method a pretty simple just everything is marked and tagged ants I you can easily come up with the cost of goods sold and the and inventory

for your inventory asset account so in the next presentation will be talking with paper which is a lot more difficult than your up to you follow would be I'll cost flow chart on going to prepare are you still see you guys in the next tutorial.. Thanks for visit..

The FIFO Method for Inventory Costing

In this presentation will be covering inventory costing method known as waco which is an acronym which represents first in the first oh which basically means that the first purchases we make are going to be the first ones that we expands as costs a good soul because cost of goods sold is our expense for inventory so basically what this means

is if we have hertz is on January 1st in purchases on January thirty-year when the soul some goods we're going you d expect seeing the january 1st urge says first annual see exactly how it works in an example shortly so will be will be determining what caused a good soul is either expands good income statement and also be fair you know what I D inventory is which will go on the balance sheet as an asset which is of course inventory and adjust to things they want to go over which you should remember while we go through this presentation

the first one is that the play persist some is going to yield the same amounts for the periodic and be perpetual system so when we're calculator cost good sold in ending inventory the fight to map it is going to yield the exact same numbers for the periodic or the perpetual sis some it won't matter so it will always calculate the same members this remember that and the second one is that of course but by April method always remember to you cyrix spence the historical store call my inventory

first and you'll see what I mean by that as we go through I this example so we'll cover that now let me just close that's I will close these diagrams as well it'll bring up a table which is gonna go over some purchases and some sale them is gonna change my color your admitted to us Scion color and bring up a new layer cigarette on so basically what we're looking at is really not being immature with certain amount of units purchases sales purchases sales purchases nice with but corresponding amount of the units

we ever unit costs for our purchases and of course the sales price is going to be higher than our unit cost because the course for making a profit on the purchases are also would make sense to be in business so let's look at how we're gonna determine cost of goods sold so for this we're going to be looking I'm inventory example you seen I am inventory which is going to be were basically celine milk products because I think by PBO %ah obviously a purse work works but senior are most store going to trade for it makes sense that we're trying to read up be order milk inventory first before it expires so I think this would be a good example

news so let's go ahead and figure out what's how much our cost of goods sold is going to be so how we normally would do this as I would rate down kirchners and I will include all the all good beginning inventory as per perch says and the courage that so will have 300 units one units at ten dollars which is going to be three thousand dollars for that person mounted and current out to mature a beginning inventory is worth then we have a purchase which is 200 units at fifteen dollars

which is going to be three thousand dollars as well we have occurred just over 100 units when general event
for seventeen dollars each which is seventeen hundred dollars up inventory and by we have generated is 300 units acts twenty dollars which is going to represent six thousand dollars so basically how r reports you zero dark awesome goods sold well we're gonna have to look at the sales because our cost of goods sold is and expands when we make a sale so let's what's record the sales and figure out the cost of goods sold so if me the first

the first sale was made on January 8 so we so 300 units and know what I'm gonna wanna do is a min want to figure out what is the cost a good soul pretty 300 units well use enough weight to Matt said we want to expand its the first kirchners that Sri obtain so january 1st is our first inventory are our most sister going to burst so we're gonna expand so that first so 300 units and we have three hundred units are we originally had to begin with so rent expense all those and that sale is gonna have cost a good sober ,000 dollars so we just basically expands

I V the most historical i download milk which is going to be our last 13 basically got rid of that see how it basically based this costs up close some shane is getting rid of or it's expecting be historical items first and then the next sales going to be two hundred and fifty units which is going to equal how much well the second level here only has 200 yet so we can expand its all about at three thousand dollars but that's not the only units me 250 units so there's missile if he remained so

ice actually say that oh only let me slip this %uh ball well actually say 200 200 equal to you three thousand dollars a while the remaining 50 units what is that going to be equal to well we would move down to the next level me with a 50 units at 17 dollars is going to be how much what's let's get our calculator there good sir and fifty times seventeen is going to be eight hundred and fifty dollars which is going to cost of goods sold
for those remaining 50 units

and of course we have gone to read out to be the second amount that milk and we kinda gotten rid early expands Applebees units because we have remains in speed on the expense fifty FBI units a bat purchase order so you always wonder rate down the remaining I mounted unit but you still have to expect in case there are more sales entries and looks for greater cost a good soul because ,000 Oct 3 2008 that you have to be six thousand which is our cost %uh

goods sold which is at our expense for inventory and now we just need to figure and inventory which is just going to be the residual amounts I which is which is going to be subtracted from how much inventory we originally had so we had 6700 ,000 3,000 that's going to be I ,000 703 originally BJ and wet so 13,700 subtracts 50 what will that be that will be 3700 -68 50 is going to be ironically that is which is our an inventory and their egos its it's it's that simple.

we just expense are most historical units first and up with their cost of goods sold and then me find a residual amount which I is subtracted from how much we began with an you can also calculate and inventory by game by a looking at be mounted units yet and you know it so 300 units at twenty dollars the 6,000 and 50 units times 17 is eat turkey Saudi 6,000 800 and fifty as well so he can also calculated that way in case your cost of goods sold number is incorrect and that's basically the playful method

I am I think that's all I basically wanted to cover and will be basically covering the weighted average or the average are costing method for inventory in an exit row so make sure to subscribe like always spurred the channel and of course I'm you can sign up on internet .ca when me finished the website developments which is going to have a lot of great resources for accounting and business students and students in general so of you guys in an exit row.. Thanks for visit...

The Average Cost Method for Periodic System Inventory Costing

So few moments ago we were just talking about the paper matter but now we can begin talking about the average cost method for calculating the cost of goods sold and an inhibitory and the average cost not that is really going to give us an average unit cost for each inventory item and then we're going to multiply it by be total amount of items that we've sold to actually get our total cost of goods sold and before we begin

I just wanted two notes that's the average cost method is actually going to yield a different cost of goods sold and and inhibitory number heard the for the periodic and be perpetual system so I'm like the paper map it we're actually going to have to do a calculation up the average cost method for the perpetual and appear ok system separately because they will not yield the same results so able knots yield the same same results so we're going to be doing to use your above the two in which we're going to be covering that periodic system and then an the next two or three tutorials will be calculating the cost of goods sold 19 inventory using the perpetual

I inventory system and the average cost method but now we're just going to be using the periodic system so let's go ahead and actually talk about bath salts thereof get rid of all these illustrations bring up our our table purchases and sales and of course our inventory items which are milk and if you remember from the before a firm on the paper article we were actually were expecting a DUNS now we're historical and then you're slowing movie in its your expense items that we've just recently purchased and they all had different unit costs but the average cost not that we're gonna have the same

the same unit price for each of these inventory items so that when we expense wanna be's inventory items
they will all have the same unit cost so how are we gonna come up with this number hours and 22 cents well there's two ways one that's gonna be the crack map it and one that is an incorrect matter that sometimes people

I'll me messed up on or just like Pamela bed you guys a be have been used be weighted average and no use just the average instead so this would be bien Creek map it which I'm gonna show you guys really quickly and you don't want to be doing this on sometimes people take ten dollars which are the unit costs so they're gonna like we're going to try and determine the average unit costs for it wannabes inventory items of note and bill a blowout up all the unit costs solo se tan plus plus 17 lust which would be sixty two dollars

I think twice 10-15 I which is credit buyer budget buyer yes sixty two dollars and then they'll say well they're
for purchase orders so that must mean that must mean than our hours you know Christ is going to be fifteen dollars and fifty cents but the thing is that it doesn't match up with the actual correct you to cost hurt inventory item every word expense one I one-piece upper inventory units so how are we going to actually come up with the 15 or the 22 cents or we're gonna do you is we're actually going you need to create a weighted average because as you can see

as you can see we can just average hand 15 17 20 divided by four it's because you should be is has a difference amounts I've units for the purchase order and they're all girl different you can only add them up
and divide by 4 if they are the same unit number so if they were all units then we could add up the unit costs
and then just divide by four but because they have different amounts i've units in each purchase order we're going to have to use a weighted average so how are we going to do that we're gonna ready yet rated up

first we're gonna say correct method Europe on top and what we're gonna do is we're just gonna multiply you should be is at the mop and then we're going to you divide by the total units so first let see how many units BRB up three hundred their I'm treating the beginning inventory like a purchase ans because it is up her to her inventory and $300 plus 200 units which is a purchase plus a hundred units was 300 units will be 300 600 you hire 900 units and you traces are 10 dolares

fifteen dollars seventeen dollars and twenty dollars so what's will be the total costs will have three thousand there well have 3,000 there as well well have 1700 for that purchase order and finally the inventory I'm costs are value for that last purchase order will be thousand dollars so in total in total that will be what will be three thousand both the dozen bus 1700 was 6,000 is 13,000 seven hundred and that is
that is what our inventory is worth now

to get the average cost her her you know that inventory in which we're going to expect each unit by we're just got sick total cost which is thirty thousand seven hundred and divided by 900 units and that is going to yield you corrects unit grace so 13,700 divided by 900 units which is fifteen dollars fifteen dollars and 22 sensible repeating sign on top that goes on forever and of course using the cost of goods sold we're just gonna take 15 or 20 cents which is which is the the per-unit costs and we're just going to expand each units for each unit that we've sold

so this we have two sales here we have a 300 a 300 units jailbreak here which is number one and we have a second sale order for 250 units so what's let's break this down individually and we have units sold sorry there are sales said 300 units times times fifteen dollars in 22 cents will be how much they'll be.12 simes 300
is 45x and 250 units will be will be exactly how much is that going to be that's going to be time 16 hours and 22 3,000 and five dollars and that's going to be our cost goods sold number rate there so we'll have what well will find the sum of those to resist for about six six plus through tato by which is 8,000 and 71 which is gonna be our cost gets old and then we just take

the the total you told beginning inventory ands we just subtract our cost of goods sold because that's just how much you get essentially sold in the remainder will be how much we have leftover sewer and inventory will be 5,000 and 29 dollars so that's essentially how the average cost method is going to work you just always creates a weighted average to find the unit cost you'll be expecting her right now and then use most by a by a bee total amount are units that you actually sold to come up with your cost of goods sold

and then you can of course determine your and inhibitory so the next presentation will be talking about Wat Pho even though it's not allowed in Canadian gap or IFRS standards anymore it's actually still allowed in US gaps that we're so going to you showed essentially how to perform that so all see you guys.. Thanks for visit...

The LIFO Method for Inventory Costing

Now we're going to be talking about the life a method to make seem a little bit
on it perspire we're gonna be
talking a bit late but actually still introducing its concept because
a lot different countries IFRS is implemented which are
international accounting standards and it's actually not allowed
under IFRS or private enterprise or Canadian job but the thing is
it still is allowed under US gap and

a lot of my viewers are critics American so I
but I would include this tutorial he summarized the way promoted so we'll go
over it

quickly but always remember back it is
it had not allowed under IFRS or any
private enterprise comedian job if you are
Canadian or it pure country uses
I apparatus standards are international standards but if you're in the US The
Corrs

wipers so is a valid om
not dead or policy for your inventory so let's go ahead
and actually talk about that
Mary's the blaster and its and
so will be a up course talking about the same thing will be trying to get across
a good sold

and I mean inventory waco actually stand then
or last and first
notes on the last inventory that we purchase
is going to be the first that we expand so
course again if we have if we have some

mandatory not sixteen dollars on January the first
and we have some inventory that is worth twenty dollars
that we purchase on January thirtieth you will expand its
this inventory first because bats
was are last her chest so

will go ahead and actually look at an example and look ugly
be's I like I always am label Matt that is exactly the opposite up the paper
method because the papers just
the first and expense while the wiper was the last
inventory purchased an expand so what's
let's go ahead and actually look at
the example course like always

Richard using the same table unit costs
units and of course are really overpriced milk so
we have overcoat cores are costs associated with them
I 10 or unit costs 15 17

twenty dollars for all our inventory that we purchased an hour beginning
inventory
so let's go ahead and calculates
cost of goods sold for the way from happened so
like always we're going to want you
gonna want to rate down our purchases her
kirchners ants will be looking at the
units which is 300 300 units

acts rush just read it I'm sign
thing that works better equals 3 Bozeman
roller tutorials they've actually the course
been the same amounts or with the inventory is worth
so actually have all abuse music number and buy an ounce of 100 units
except I can to rate back with women seventy people seventeen hundred dollars
but being

areas were that of course 300 units at
twenty dollars is six thousand or so basically
that is water inventory is work
and tonight is 13,700

so are beginning inventory and are kurds says that's what our inventory is worth
course we have those sales which are gonna determine
our cost of goods sold expand so
course our first sale is made on
the UV generate the aid
units so

course really need your expense 3
units so use in the light home at that
we're going to you expense the units or the purchases
attendance rate that's me knows recently purchased there of course
that will be are purchased angry on January BET
those colleague were working backwards as opposed to the paper map and so
that 300 units we are going to expand its
this entirely cross that

that immature art since the expense that wobble
and that's gonna be 300 unit that twenty dollars
which will be Alex you keep bringing
to which is going to be six thousand dollars
and are our next one will be at Salem
and 50 units access probably

cross that are our last note inventory or actuar
first because we're getting rid of that that first inventory levels
so course that no Kaidan is gone and now works Pantene
I'm 250 units

turned 50 units at that's what is the
the most necks recent majorie
I purchase order it is the course our general entry which is a hundred units
at seventeen dollars so beacon expands a hundred
those units but we need 250 units to expand so

so what's biggest sounds do things like always and will say a hundred units
at seventeen week spent seventeen hundred dollars the goods
and we need another 150
obviously it's about the 100 and 150

unit that we'd expect adds up to over 250 units
sale so let's go ahead and expand the 150 units
from the next most recent purchase and rib injury
so it's kinda like me expense three-quarters of thats
and of course we have 50 units

what over so we expect the 150 units I bats
unit cost which is speaking dollars
and that will come see reviews acquiescing
exactly 15 pounds 1 its you will be
pepsi

and in total that's going to give us
a cost of goods sold bad is 9000
and 50 hopefully up its on-screen
Michael agree sir so basically what we've done is be expense
the 17 dollars level of inventory
and of course a bit %uh be the third level
RR or third most recent

up Kercher century up inventories an hour left with kind of like a
combination
%uh somewhat be we have fifty
units remain in about fifteen dollars note and of course we have
on the entire treated you note the ten dollars not gonna
course just a fighter and inventory
will take but 30 about them 700

subtract our cost of goods sold which is
much inventory which sold and of course whatever research talk with
minus whatever resold will be our ending inventory
and thirty thousand seven hundred minus 9950
is going to be three pounds and seven hundred and fifty dollars
abandon inventory and those are our two numbers

that we've come up with using a light but not the so
on I was pretty quick one and we will talk
boats essentially I think we'll be talking
over you seem be and moving average
for the weighted average method using perpetual system
national actually say bats delay per Matt
it's going to use misstates for the perpetual
ants periodic system and I will

yield be exact same results because console and an inch or so
that's it for now, thanks for visit..