TIP: The use of FIFO with a perpetual system always yields the same results as the use of FIFO with a periodic system. The same does not hold true with the LIFO or average cost methods.
TIP: When using the average method and a perpetual system, a new average unit cost must be computed only after each new purchase; a sale will not affect the average unit cost.
TIP: Examine your solution to the exercise above and judge the reasonableness of your answers. What do you expect the relationship of the answers to be for the periodic system?
**ILLUSTRATION 6-1: FORMULAS FOR ESTIMATING INVENTORIES (L.O. 8)
The retail method can be used as a cost (pricing) method ...