When the average-cost method is applied to a perpetual inventory system, the sale of goods will change the unit cost of the goods that remain in inventory.

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When the average-cost method is applied to a perpetual inventory system, the sale of goods will change the unit cost of the goods that remain in inventory. This is because the average cost of the goods in inventory is recalculated after each sale, based on the cost of goods available for sale and the quantity remaining in inventory. As a result, the unit cost of the goods that remain in inventory will be adjusted to reflect the new average cost of the remaining inventory.

When the Average-Cost Method Is Applied to a Perpetual Inventory