Inventory Expensing Using the FIFO Method

Description
This video covers the frequently used cost flow assumption method, FIFO. FIFO stands for first in first out which means the first inventory that is purchased will be expensed first. Usually this will lead to cost of goods sold being higher each quarter (due to the fact that prices of goods purchased normally go up.. THINK INFLATION!).

This method is acceptable under IFRS and ASPE and can be used by private or public companies. By watching this tutorial, you will learn how to calculate the cost of goods sold and ending inventory.

Video length: 10:56