Question: Explain why, when using the average cost formula in a perpetual inventory system, we must calculate a new weighted average unit cost after each purchase,
Explain why, when using the average cost formula in a perpetual inventory system, we must calculate a new weighted average unit cost after each purchase, but not after each sale.
Step by Step Solution
3.17 Rating (164 Votes )
There are 3 Steps involved in it
A new weighted average unit cost must be calculated after each purchase because a new cost a... View full answer
Get step-by-step solutions from verified subject matter experts
