Pam’s Creations had the following sales and purchase transactions during 2016. Beginning inventory consisted of 270 items at $95 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records.
Date Transaction Description
Mar. 5 Purchased 250 items @ $ 105
Apr. 10 Sold 145 items @ $ 205
June 19 Sold 155 items @ $ 205
Sept. 16 Purchased 200 items @ $ 110
Nov. 28 Sold 135 items @ $ 210
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.
c. Determine the ending inventory balance Pam’s Creations would report on the December 31, 2016,