Question: Donovan Inc had the following sales and purchase transactions during

Donovan, Inc., had the following sales and purchase transactions during 2016. Beginning inventory consisted of 120 items at $80 each. Donovan 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 Donovan would report on the 2016 income statement.
c. Determine the ending inventory balance Donovan would report on the December 31, 2016, balance sheet.

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  • CreatedApril 20, 2015
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