Action, Inc., had the following sales and purchase transactions during 2013. Beginning inventory consisted of 120 items at $80 each. Action uses the FIFO cost flow assumption and keeps perpetual inventory records.

Required
a. Record the inventory transactions in general journal format.
b. Calculate the gross margin Action would report on the 2013 income statement.
c. Determine the ending inventory balance Action would report on the December 31, 2013, balancesheet.

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Date Transaction Mar. 5 Apr. 10 June 19 Sept. 16 Nov. 28 Purchased Sold Sold Purchased Sold Description 100 items S90 70 items @ $175 80 items @ $175 50 items @ $95 60 items $180