Introduction to Inventory | Accounting How To | How to Pass Accounting Class

Introduction to Inventory | Accounting How To is an accounting tutorial explaining how inventory is tracked in a merchandise business, highlights the difference between perpetual and periodic inventory, and introduces inventory cost methods: FIFO (First In, First Out), LIFO (Last In, First Out), and AVCO (Weighted Average Cost) and the journal entries needed to track inventory. This is an accounting tutorial for accounting students, business owners, and bookkeepers to explain accounting basics for beginners. Featuring Terrance the T-Account Rex and accounting educator, Caroline Grimm, this accounting tutorial is part of two playlist series: How to Pass Accounting Class and Merchandise Businesses and Inventory Cost Methods. ⏰ Accounting How To Time Stamps: 00:00 Introduction to Inventory 00:23 Merchandising Inventory and Raw Materials Inventory Explained 00:47 Why we track inventory 01:40 Periodic vs Perpetual Inventory 03:12 Differences in Inventory and Physical Inventory 04:33 Matching Principle Re-visited 05:14 Recording the sale of merchandise journal entry under perpetual inventory 06:06 Recording the sale of merchandise journal entry under periodic inventory 07:02 Determining the cost of merchandise for each sale 07:45 Inventory Cost Assumptions 07:56 Introduction to FIFO (First In, First Out), LIFO (Last In, First Out), AVCO (Average Cost) 08:19 Introduction to sales, sales discounts, purchases, purchases discounts, allowances, shipping. 08:40 The Terrance Store Re-visited. In case you need some dinosaur shampoo.