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 is used.

Question

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When the perpetual inventory system is used,cost of goods sold is determined at each point of sale using the weighted average cost at that point.When the periodic inventory system is used,the weighted average is calculated at the end of the period and is used to determine cost of goods sold at that point.

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