[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 220 items at $98 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records. Date Mar. 5 Apr. 10 June 19 Sept. 16 Nov. 28 Transaction Purchased Sold Sold Purchased Sold Description 280 items @ $108 160 items @ $211 295 items @ $211 230 items @ $113 150 items @ $216
[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 220 items at $98 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records. Date Mar. 5 Apr. 10 June 19 Sept. 16 Nov. 28 Transaction Purchased Sold Sold Purchased Sold Description 280 items @ $108 160 items @ $211 295 items @ $211 230 items @ $113 150 items @ $216
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1: Calculate the gross margin Pam’s Creations would report on the Year 2 income statement. Include answers for sales, cost of good sold, and gross margin 2: Determine the ending inventory balance Pam’s Creations would report on the December 31, Year 2,
![Required information
[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 220 items at $98 each. The company uses
the FIFO cost flow assumption and keeps perpetual inventory records.
Date
Mar. 5
Apr. 10
June 19
Sept. 16
Nov. 28
Transaction
Purchased
Sold
Sold
Purchased
Sold
Description
280 items @ $108
160 items @ $211
295 items @ $211
230 items @ $113
150 items @ $216](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5bded0ca-862a-45eb-a2f2-6408401a3940%2F7da9b2a5-ea3a-4e5d-acc8-05a9ac74ead7%2F51qsh3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[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 220 items at $98 each. The company uses
the FIFO cost flow assumption and keeps perpetual inventory records.
Date
Mar. 5
Apr. 10
June 19
Sept. 16
Nov. 28
Transaction
Purchased
Sold
Sold
Purchased
Sold
Description
280 items @ $108
160 items @ $211
295 items @ $211
230 items @ $113
150 items @ $216
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