Required information Problem 5-20A (Algo) Allocating product costs between cost of goods sold and ending inventory: intermittent purchases and sales of merchandise LO 5-1 [The following information applies to the questions displayed below.] Pam's Creations had the following sales and purchase transactions during Year 2. Beginning inventory consisted of 180 items at $86 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records. Date March 5 Transaction Purchased Sold April 10 June 19 Sold September 16 Purchased November 28 Sold Description 160 items @ $96 100 items @ $187 175 items @ $187 110 items @ $101 90 items @ $192 Problem 5-20A (Algo) Part b b. Calculate the gross margin Pam's Creations would report on the Year 2 income statement. Sales Cost of goods sold Gross margin