Pam's Creations had the following sales and purchase transactions during Year 2. Beginning inventory consisted of 60
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Question:
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.
Date | Transaction | Description |
---|---|---|
March 5 | Purchased | 50 items @ $ 370 |
April 10 | Sold | 30 items @ $ 450 |
June 19 | Sold | 60 items @ $ 450 |
September 16 | Purchased | 70 items @ $ 390 |
November 28 | Sold | 45 items @ $ 480 |
Required
- Record the inventory transactions in a financial statements model.
- Calculate the gross margin Pam's Creations would report on the Year 2 income statement.
- Determine the ending inventory balance Pam's Creations would report on the December 31, Year 2, balance sheet.
Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
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