If someone who had never watched Game of Thrones â or read the original written series A Song of Ice and Fire â asked who the main character was, what would you say? Though many point to Jon Snow, Tyrion Lannister, and Daenerys Targaryen as the main protagonists, narrowing it down to just one is tough. Thanks to the beauty of statistical analysis and network science, we finally have an answer: Tyrion Lannister.
As you can see, the average cost moved from $87.50 to $88.125âthis is why the perpetual average method is sometimes referred to as the moving average method. The Inventory balance is $352.50 (4 books with an average cost of $88.125 each).
This technique is also referred to as moving average method. Using the data from above example we can compute the cost of goods sold and the cost of ending inventory as follows: Cost of goods sold: $4,092 + $5,158 + $14722 + $2,103 = $26,075 (Total of sales column) Cost of ending inventory: $9,665 (Balance column) The use of average costing method in perpetual inventory system is not common among companies. The main advantage of using average costing method is that it is simple and easy to apply.