of 123 Accounting Co.
January 1: Opening Inventory is 60 units @$10/each
January 10: Bought 100 units @$11 each
January 15: Bought 100 units @$13 each
January 20: Sold 220 units @$20 each
January 25: Bought 40 units @ $15 each
If prices are rising during the year (inflation) then 123 Accounting will show the highest net income under:
Weighted Average (perpetual)
Weighted Average (periodic)
All methods will yield the same reported income
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