Porter, Inc., had the following sales and purchase transactions during 2009. Beginning inventory consisted of 80 items at $120 each. Porter uses the FIFO cost flow assumption and keeps perpetual inventory records. Assume all transactions are cash.
Date Transaction Description
==== =========== ===========
Mar 5 Purchased 100 items @ $125
Apr 10 Sold 60 items @ $240
June 19 Sold 75 items @ $245
Sept 16 Purchased 40 items @ $130
Nov 28 Sold 50 items @ $255
Required :
1. Record the inventory transactions in general journal
format.
2. Calculate the gross margin Porter would report on the
2009 income statement.
3. Determine the ending inventory balance Porter would
report on the December 31,2009, balance sheet.