Problem
Pam's Creations had the following sales and purchase transactions during 2016. Beginning inventory consisted of 60 items at $350 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records.
|
Date
|
Transaction
|
Description
|
|
Mar. 5
|
Purchased
|
50 items @
|
$
|
370
|
|
Apr. 10
|
Sold
|
30 items @
|
$
|
450
|
|
June 19
|
Sold
|
60 items @
|
$
|
450
|
|
Sept. 16
|
Purchased
|
70 items @
|
$
|
390
|
|
Nov. 28
|
Sold
|
45 items @
|
$
|
480
|
Required
a. Record the inventory transactions in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
b. Calculate the gross margin Pam's Creations would report on the 2016 income statement. (Amounts to be deducted should be indicated with a minus sign.)
c. Determine the ending inventory balance Pam's Creations would report on the December 31, 2016, balance sheet.