Pam’s Creations had the following sales and purchase transactions during 2016. Beginning inventory consisted of 280 items at $96 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records.

Pam’s Creations had the following sales and purchase transactions during 2016. Beginning inventory consisted of 280 items at $96 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records.

 
Date     Transaction     Description
  Mar. 5     Purchased     260 items @     $     106    
  Apr. 10     Sold     150 items @     $     207    
  June 19     Sold     160 items @     $     207    
  Sept. 16     Purchased     210 items @     $     111    
  Nov. 28     Sold     140 items @     $     212    

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.