In this video you'll learn how the FIFO (first in, first out) inventory cost assumption works. The FIFO method assumes that the oldest products in a company’s inventory have been sold first. We'll practice using an example to illustrate how FIFO is used to calculate cost of good sold (COGS) and ending inventory. We'll also compare FIFO with the LIFO method so we can understand the difference between these calculations. Timestamps 00:00 The FIFO Inventory Method 01:34 Why Inventory Cost Assumptions Are Used 02:39 The FIFO Inventory Principle Explained 03:02 Accounting With FIFO - An Example 04:21 Comparison With LIFO Inventory Method 05:08 Advantages of FIFO 06:09 Calculating Closing Inventory with FIFO 07:28 Wrap Up#accounting #fifo #CostAccounting