Companies that use the perpetual system and want to apply the average cost to all units in an invent

Companies that use the perpetual system and want to apply the average cost to all units in an invent

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Companies that use the perpetual system and want to apply the average cost to all units  in an inventory account use the  moving average method . Every time a purchase  occurs under this method, a new weighted average cost per unit is calculated and 
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Unformatted text preview: applied to the items. As the chart below indicates, the moving average cost per unit changes from $14.00 to $15.50 after the purchase on April 10 and becomes $16.70 after the purchase on October 10....
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