Thank you SO MUCH!! this was extremely helpful and I actually understood my accounting homework for the first time. I could honestly cry right now! Thank you so much for helping me understand this!
I have a midterm coming up and was a little fuzzy on weighted average but you explained it great! Thanks for the help, I will definitely be subscribing to your channel!
Hey ...Thank you for this video ...i want to know if there is maybe 2 sales during the reporting period ...do we still use this method of only getting the average cost per unit?
Thank you, thank you, thank you!! This is the first video that actually got through to me! I got the FIFO and the LIFO but this average weighted cost stuff through me for a loop!
Thank you! What do we do with the end inventory when we start a new year? Can we take that average cost and work it into the new years average buy cost? Meaning let's say I have 100 units at 1.50 each, and my costs go up, or fluctuate. If I buy 300 more units, can I average out the cost of 400 in the new year?
What about the 5 purchases of that inventory item that were in the previous year?? How do they figure into the Weighted Average inventory cost calculation? In other words, do you limit inventory purchases in the calculation to those layers represented in the current inventory balance? These questions arise when you actually try to build a model to calculated weighted average inventory value.
FIFO and LIFO seem too complicated for where I’m at and so the simplicity of WAC (weighted average cost) is very appealing. However, the inconsistent use of terminology in various articles / videos I’ve come across discussing WAC has me confused. Is a WAC calculation done for (A) each product in inventory or is it calculated using the (B) total cost of all products in inventory? For example, let’s say I have 500 different products in my inventory. Some products have an average cost of $1 per unit, and other products can average $20,000 per unit. If I were to calculate WAC using (B) the total cost of all products in inventory, then the average cost of a unit in inventory would be around $2,000. Now let’s say I go to sell my cheapest product for $2, my COGS for that sale would be $2,000??? This doesn’t seem right. Which one is correct?
Comment below: What is your challenge with weighted average inventory??
hello ! my challenge here is : What if there is a return? what if there are sales that occurred during the process "in between" .. thanks in advance
Thank you SO MUCH!! this was extremely helpful and I actually understood my accounting homework for the first time. I could honestly cry right now! Thank you so much for helping me understand this!
So happy to help!
Your saving me about 4 hours of trying to learn this alone
You save me so much time right now. I can’t even tell you thank you so much with this video. This class has been killing me.
Thank you so much, for your explanation of weighted average. It was straight to the point, easy to follow, and understand. Your awesome!
I have a midterm coming up and was a little fuzzy on weighted average but you explained it great! Thanks for the help, I will definitely be subscribing to your channel!
bruh if this is your midterms bruh I would rather solve this 10 times than do half of what we have for prelims
thanks for helping me pass my course
Happy to help! bit.ly/secret-video-vault-free
You are a Saint amongst men thank you so much
Hey ...Thank you for this video ...i want to know if there is maybe 2 sales during the reporting period ...do we still use this method of only getting the average cost per unit?
Will rounding the numbers to whole or 2 decimal places matter when filling out inventory stock cards?
Thank you, thank you, thank you!! This is the first video that actually got through to me! I got the FIFO and the LIFO but this average weighted cost stuff through me for a loop!
Thank you! What do we do with the end inventory when we start a new year? Can we take that average cost and work it into the new years average buy cost? Meaning let's say I have 100 units at 1.50 each, and my costs go up, or fluctuate. If I buy 300 more units, can I average out the cost of 400 in the new year?
loved this!! super easy to understand.
Sir total inventory ending inventory involves or not ??
What about the 5 purchases of that inventory item that were in the previous year?? How do they figure into the Weighted Average inventory cost calculation? In other words, do you limit inventory purchases in the calculation to those layers represented in the current inventory balance? These questions arise when you actually try to build a model to calculated weighted average inventory value.
What about when you have a beginning balance from the the previous year?
Beginning Balance from previous year will be used to calculate ending balance which becomes beginning balance of current year. Hope that makes sense!
Is there anyway you could help me out with an accounting problem?? Love the videos but struggling a bit currently with process costing.
For process costing and more, check out the Accounting Student Accelerator!
Managerial Accounting Accelerator 👉 bit.ly/aua-mgr
How do u get the sell 80
FIFO and LIFO seem too complicated for where I’m at and so the simplicity of WAC (weighted average cost) is very appealing. However, the inconsistent use of terminology in various articles / videos I’ve come across discussing WAC has me confused. Is a WAC calculation done for (A) each product in inventory or is it calculated using the (B) total cost of all products in inventory?
For example, let’s say I have 500 different products in my inventory. Some products have an average cost of $1 per unit, and other products can average $20,000 per unit. If I were to calculate WAC using (B) the total cost of all products in inventory, then the average cost of a unit in inventory would be around $2,000. Now let’s say I go to sell my cheapest product for $2, my COGS for that sale would be $2,000???
This doesn’t seem right. Which one is correct?
Thanks a lot man👍
What about FIFO?
I got my finals tommorow thnx for the help -_-
thank you man
Thank you 🖤
Thanks for the tutorial it was really helpful in a pinch! However, the typing almost made me throw my computer out of the window LOL!!!!!
Thanks sir g
Thank thak you so much
I love you so much 🎉thank you
The loud typing is a little distracting, but I appreciate the lesson.
Why do you look like an accountant 😅🤣
35×19.39 equals 697.55 (698 rounded up). I think You gotta remake the video there's an error 😂
war arsch
I understand nothing