Lesson: Example of FIFO Valuation

In this lesson, Nick Palazzolo, CPA, breaks down the FIFO (First In, First Out) inventory valuation method with the kind of enthusiasm that turns accounting concepts into engaging learning experiences. By examining how FIFO operates in periods of rising prices, Nick demonstrates why this method results in the highest ending inventory and net income and the lowest cost of goods sold. Watch as he skillfully walks through an example involving the first year's purchases and sales of Essor Corporation, making complex calculations seem like a breeze. His practical tips, such as the similarity between perpetual and periodic FIFO results and the importance of keeping work visible during simulations, are sure to be time-savers. Prepare to dive deep into inventory accounting with Nick's spirited teach-through that proves educational content doesn't have to be dull.