The assignment of costs to cost of goods sold and inventory using (moving) weighted average usually gives different results depending on whether a perpetual or periodic system is used.

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In a perpetual system, each transaction affecting inventory and cost of goods sold is recorded as it occurs, while in a periodic system, inventory and cost of goods sold are calculated periodically (usually at the end of an accounting period). This difference in timing can lead to different results when using (moving) weighted average to assign costs to inventory and cost of goods sold.

The Assignment of Costs to Cost of Goods Sold and Inventory