Inventory Cost Flow Assumptions Cheat Sheet
Inventory Cost Flow Assumptions Cheat Sheet
Inventory Cost Flow Assumptions Cheat Sheet
Understand how businesses assign costs to inventory and cost of goods sold with this Inventory Cost Flow Assumptions Cheat Sheet. This one-page, printable guide explains the three most common inventory costing methods: FIFO, LIFO and Average Cost (AVCO).
What is in the Cheat Sheet?
You’ll learn about:
FIFO (First-In, First-Out) – Oldest inventory costs go to COGS, newest costs stay in closing inventory.
LIFO (Last-In, First-Out) – Newest inventory costs go to COGS, oldest costs stay in closing inventory.
Average Cost (AVCO) – Uses the weighted average cost per unit for both COGS and closing inventory.
Why consistent cost flow assumptions are needed when identical items are purchased at different costs over time.
How to use a cost flow table to calculate COGS and closing inventory step-by-step.
Perfect for accounting students, bookkeepers and business owners wanting to master inventory valuation methods.
How will I receive my Cheat Sheet?
The Inventory Cost Flow Assumptions Cheat Sheet is a digital product. After completing your purchase you'll receive an email. It will contain a link to download a pdf file.
If you run into any issues then please contact me here. I’ll get back to you as soon as possible.
All prices are in USD.
This pdf was carefully put together to summarize all of the key information from my Inventory Systems video on one page.
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Find out how Inventory Cost Flow Assumptions are used to calculate Cost of Goods Sold and Closing Inventory. This video covers three key methods: FIFO, LIFO and AVCO.