Pam’s Creations had the following sales and purchase transactions during Year 2. 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 a financial statements model.
b. Calculate the gross margin Pam’s Creations would report on the Year 2 income statement.
c. Determine the ending inventory balance Pam’s Creations would report on the December 31, Year 2, balance sheet.

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Transaction Purchased Sold Description 50 items @ $37o Date Mar, 5 Apг. 10 Sep. 16 60 items @ $450 June 19 Sold Purchased Sold 70 items @ $390 45 items @ $480 Nov. 28