Video: Inventory Overview and Objectives

In this lesson, join Nick Palazzolo, CPA, as he tackles the complex world of inventory accounting with enthusiasm and expertise. Delving into the essential methods—LIFO, FIFO, weighted average, perpetual, and periodic—Nick clarifies how these systems impact the calculation of inventory costs and the subsequent cost of goods sold. With an emphasis on the end goal being to accurately value inventory on the balance sheet, he underscores the importance of proper inventory valuation to avoid overstatement of assets and understatement of liabilities. Furthermore, Nick will guide you through the process of preparing a roll forward of inventory account balances and reconciling differences between the subledger and general ledger, highlighting practical steps for ensuring accurate financial reporting. So gear up for a deep dive into inventory strategies that are key to mastering this aspect of financial accounting.