1-A.Pams 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 1. Record the inventory transactions in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a Record purchase of inventory for cash.

b.Record the sale of inventory for cash.

c.Record entry for cost of goods sold.

d.Record sales of inventory for cash.

e.Record entry for cost of goods sold

f.Record purchase of inventory for cash

g.Record sale of inventory for cash

h.Record entry for cost of goods sold.

2.. Calculate the gross margin Pams Creations would report on the Year 2 income statement.

3.Determine the ending inventory balance Pams Creations would report on the December 31, Year 2, balance sheet.

1-B

The following information pertains to Mason Company for Year 2.

Beginning inventory	90 units @ $40
Units purchased	310 units @ $45

The ending inventory consisted of 30 units. Mason sold 370 units at $90 each. All purchases and sales were made with cash. Operating expenses amounted to $4,100.

Required a. Compute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round cost per unit to 3 decimal places and final answers to the nearest whole dollar amount.)

b. What is the amount of net income using FIFO, LIFO, and weighted average? (Ignore income tax considerations.) (Round cost per unit to 3 decimal places and final answers to the nearest whole dollar amount.)

c. Compute the amount of ending inventory using (1) FIFO, (2) LIFO, and (3) weighted average. (Round cost per unit to 3 decimal places and final answers to the nearest whole dollar amount.)