IFA35 – FIFO vs LIFO. Perpetual vs Periodic. Inventory Systems Explained

Download the Workbook: http://www.tonybell.com Unlock 100+ Members Accounting Tutorials: https://www.youtube.com/channel/UCNFClg6mzfZ5ixpuH9c7f1A/join In This Video: We kick off Module 8 with a comprehensive introduction to Inventory at the intermediate level. We explore the critical differences between Perpetual and Periodic inventory tracking systems. From there, we dive into the core cost flow assumptions that dictate how inventory is valued: First-In, First-Out (FIFO), Last-In, First-Out (LIFO), Weighted Average, and Specific Unit Identification. Module Overview (IFA35–IFA41): This module explores Inventory valuation and tracking in depth. We will examine complex cost flow assumptions, analyze the impact of inventory errors, and apply valuation rules like Lower of Cost and Net Realizable Value (LCNRV). We will also cover inventory estimation techniques, such as the gross profit method and the retail inventory method, while highlighting key differences between US GAAP, IFRS, and ASPE.