Average Cost Method (AVCO) | Inventory Cost Flows

Thanks! Do you have a video explaining how this works for the inventory left over for the year, and what to do with it into a new year? Can the old and new inventory be averaged out over 2 different tax years?

Your videos are precise and to-the point. I watched videos of FIFO, LIFO and AVCO. I understood all three concepts which I didn't understand earlier. It was really helpful for my exams.

Just wanted to thank you for all your amazing videos. You’re getting me through my online summer accounting class!🙏

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You are really amazing. You teach the whole thing in few minutes and i never got to understand the concepts from my teacher I'm in my bachelors and have science background so it was really difficult for me in the first place but you made it all easy. Thanks! ❤️

Your videos are so helpful and well explained. Thank you!!

good stuff

Accounting stuff> my 10 year experienced teacher

you are literally a lifesaver. your videos have taught me more than hours and hours of class and reading the textbook have. thank you thank you thank you!!

Thank you sir. I know these videos take more time and work than they look. I appreciate your time.

Your videos are so insightfull, no need to hire a coach! Thanks for sharing such valuable knowledge :)

Hey James! I'm a current yr 9, just entering gcse's and trying to grasp a head start on what i'd like to do in the future, and thanks to you, my heads set on financial accounting. I've also been on this channel for quite a while now and im proud to see that your channel has blown up so much! I just want to say thank you for your content and time!

OMG YOU ARE AMAZINGGGG

10 minute video as effective as as an hour lecture

This is brilliant! I’ll use this as a basis for our inventory system. But we have raw materials inputs and use percentage of completion method for revenue cognition, so I’ll need yo adapt it to that

Very clear explanation and easy to understand 👌👌👌

This is not for service based companies, right?

Thank you for the video. Very helpful. Just can someone help me to understand, how is revenue 2750? how is it calculated?

thank you sir

Thank you James.... Great job

would bee good if you left the figures int the boxes while doing calculations but i like your vids

Excellent videos as usual 👍👍
Keep it up

I understand this concept, but there is a beginning inventory then a SALE then a purchase. So how would I go about this? Would it be as simple as putting the cost per unit of the sale as the cost per unit of the beginning inventory and not needed to average anything? I cant find videos about this type of problem anywhere.

What happens if there is more than one sale?
Great video by the way!!!!!!!!!!!

just purchased your sheets. currently taking acct 2301 , thanks man

the best accounting channel so far
so I'm implementing an accounting software and used the AVCO method, the problem is after many purchases with different costs and after selling tens of thousands of units, when the inventory becomes empty with zero stock, the inventory account is left with a credit balance of very small fractions like 0.0002.
is this something to be expected and is acceptable in terms of accounting ?

James, you made accounting easier❤️

I'm just having the hardest time understanding FIFO, LIFO and AVCO 😞 I've spent the better half of last night crying and today getting so frustrated on why my brain can't comprehend it all. Because of your video I finally understood a lil better the FIFO method. These methods are so confusing. And the book does not help.

Very detailed . thank you so much

could you cover the cost flows in both perpetual and periodic inventory systems?? Love you videos, bought all of the cheat sheets!!! Cheers!

This video made it so much easier for me! Thank you so much! ☺

You should box my ACCY professor for how poorly he teaches and gets paid a salary for it, you sir deserve a lot

Would you be able to help explain how to calculate the average cost if inventories go into negative? 3 scenarios: 1. goods in on negative inventory to zero 2. goods in on negative inventory to positive 3. goods in on negative inventory which stays negative. How do you calculate the average cost for each of the scenario?

Could you distinguish moving average and weighted average please?

And there goes another entire chapter understood thanks to your amazing videos, I wouldn't have reached to where I am in accounting without your help and lovely interactive videos :))

NICE!

really helpful, thank you. but I wish to know in closing inventory (last row of table),
why doesn't cost per unit equals 2.65, while total cost (315)/ quantity (120).

Week’s away from my ELCO exam, without you genuinely I don’t think I’d pass, I had been stuck for days and then I watch this video and you break it down so well it becomes simple! Thank you!

your method is not working for me

Hello Mr. James

I really really need your help on Cost of Goods Sold journal entry in QuickBooks

I'm an exporter. I buy raw hibiscus flower from farmers and local markets, do extra cleaning and put into bags and ship to customers abroad. I want to know how to release cost of goods sold for this use case.

I keep inventory.

My expenses include: purchase of bags, labor for extra cleaning, transport from warehouse to port of discharge, shipping cost, warehouse rent, utility, salary and overhead.


Thanks.

this is better than 4 years of accounting classes in college

Hello! I have a scenario to hopefully better understand. If an invoice is received for the unit cost + shipping, and then credit card fees are charged on top of that....does all of that go into the total cost for the inventory and then get divided by the number of units to get the weighted average?

I appreciate all the work you put into these videos, you can tell from the animations and identical format how you're trying to get it across in the easiest way possible. Much appreciated from a CFA candidate who never took an accounting class in college (somehow).

He literally IS my accounting professor

I love your videos. After each of my assigned chapters and my professors PowerPoints I find the topic that matches one of your videos and watch it to really understand the material and clarify. I call you my "second professor". Thank you so much for these videos, it is helping me pass this Financial Accounting class.

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thumbs up

great explanation, thank you