The assignment of costs to cost of goods sold and to inventory using the weighted average method usually yields different results depending on whether a perpetual or a periodic system was used.

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In a perpetual system, costs are assigned to each individual unit as it is sold, whereas in a periodic system, costs are assigned to the entire group of goods sold or held in inventory during a certain period of time. Therefore, the weighted average method may yield different results depending on the system used.

The Assignment of Costs to Cost of Goods Sold and to Inventory