In the average cost formula used in a periodic inventory system, the same weighted average cost per unit is used to calculate all of the goods sold during the period.

Question

Quizplus · Accepted Answer

In a periodic inventory system using the average cost method, the weighted average cost per unit is calculated at the end of the period and is applied uniformly to all units sold during the period, as well as to the ending inventory.

In the Average Cost Formula Used in a Periodic Inventory