Compare the Inventory Valuation Report with the one created at the start of this practice set. Note that the first two items, the ones whose cost price changed when we last purchased them, have neither the original prices of $25.00 and 30.00 nor the new prices of $28.00 and $32.00 respectively. Peachtree has created a weighted-average for these items. You will study the mechanics behind this calculation in chapter 16.

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