Question: (LO 2) Explain why, when using the average cost formula in a perpetual inventory system, we must calculate a new weighted average unit cost after

(LO 2) 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.

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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.

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