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Reply from Shinu on Jan 22 at 5:50 AM Dear Friend,
I am still on my same Point, Both are Same..
Perpetual and Periodic is method of Inventory Accounting, not Inventory
Valuation.
Regards
Shinas
| | | ---------------Original Message---------------
From: LUBNAH
Sent: Wednesday, January 22, 2014 4:13 AM
Subject: Weighted Average Method in Inventory Evaluation
Weighted average method is different from moving average one, that the latest is used in perpetual inventory so the average Cost changes based on a calculation of total cost / total quantity "at every moment in time" after you add beginning cost to the additional cost and beginning quantity to the additional quantity, but weighted average method is used in periodic inventory and it takes into account all purchasing entries and beginning quantity to calculate the "period average". |
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