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.

Required
a. Record the inventory transactions in general journal format.
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, balance sheet.

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Date Transaction Description Purchased Sold Sold Purchased Sold 50 items $370 30 items $450 60 items $450 70 items @ $390 45 items @ $480 Mar. 5 June 19 Sept. 16 Nov. 28