Lesson: Inventory Summary

In this lesson, Nick Palazzolo, CPA, brings together the pieces of the inventory valuation puzzle in a comprehensive summary. Tying everything together, he highlights the consistency of FIFO calculations and delineates how, in an environment of rising prices, FIFO and LIFO affect ending inventory and cost of goods sold differently. With clarity, Nick presents the stark numbers: FIFO has the highest ending inventory and lowest cost of goods sold, while LIFO shows the opposite effect. He doesn't stop there; he also explains how the average and moving average methods slot in with their own implications. By the end of the lesson, Nick provides a solid foundation, emphasizing that a strong grip on these core facts is pivotal to mastering inventory questions and pushing past the hurdles of the exam.