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Intro
When do we need Inventory Cost Flow Assumptions?
What are Inventory Cost Flow Assumptions?
The three assumptions: FIFO, LIFO and AVCO
How FIFO works (First In First Out)
Accounting with FIFO - Example
Step 1: Draw an Inventory Cost Flow Table
Step 2: Enter what you know
Step 3: Fill in the blanks
Step 4: Cost of Goods Sold and Closing Inventory
Advantages of FIFO
FIFO vs LIFO vs AVCO
Disadvantage of FIFO