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    angie343536's Avatar
    angie343536 Posts: 14, Reputation: 0
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    #1

    Feb 18, 2008, 11:43 PM
    Periodic inventory system
    Optima Company uses a periodic inventory system. On July 1, 2006, Optima purchased 150 units of inventory at a cost of $3.00. On July 15, 2006, Optima purchased 200 units at a cost of $3.50. On July 30, 2006, Optima sold 175 units. If Optima uses a weighted average inventory cost flow assumption, then the ending inventory appearing on the balance sheet on July 31, 2006 would be
    MaggieMouse's Avatar
    MaggieMouse Posts: 226, Reputation: 8
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    #2

    Feb 20, 2008, 01:38 PM
    Need average unit cost first: (150x3+200x3.5)/(150+200), then use the unit price times the units that are left after the sale on 7/30/06.
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