Donovan, Inc had the following sales and purchase transactions during Year 2 Beginning n consisted of 120 items at $80 each Donovan uses the FIFO cost flow assumption and keeps inventory records Date Mar 5 Apr 10 June 19 Sep 16 Nov 28 Transaction Purchased Sold Sold Purchased Sold Description 100 items $90 70 items $175 80 items $175 50 items $95 60 items $180 Record the inventory transactions in a financial statements model Calculate the gross margin Donovan would report on the Year 2 income statement Determine the ending inventory balance Donovan would report on the December 3 ) balance sheet Problem 5 20B Allocating product costs between cost of goods sold and ending inventory intermittent purchases and sales of merchandise Donovan, Inc had the following sales and purchase transactions during Year 2 Beginning inventeon consisted of 120 items at $80 each Donovan uses the FIFO cost flow assumption and keeps perpetefil inventory records Required a Record the inventory transactions in a financial statements model b Calculate the gross margin Donovan would report on the Year 2 income statement c Determine the ending inventory balance Donovan would report on the December 31 , Year 2 balance sheet Problem 20B

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Donovan, Inc. had the following sales and purchase transactions during Year 2. Beginning n consisted of 120 items at $80 each. Donovan uses the FIFO

Donovan, Inc. had the following sales and purchase transactions during Year 2. Beginning n consisted of 120 items at $80 each. Donovan uses the FIFO cost flow assumption and keeps inventory records.

Date

Mar. 5

Apr. 10

June 19

Sep. 16

Nov. 28

Transaction

Purchased

Sold

Purchased

Sold

Description

100 items @ $90

70 items @ $175

80 items @ $175

50 items @ $95

60 items @ $180

Record the inventory transactions in a financial statements model.
Calculate the gross margin Donovan would report on the Year 2 income statement.
Determine the ending inventory balance Donovan would report on the December 3.) balance sheet.

Problem 5-20B Allocating product costs between cost of goods sold and ending inventory: intermittent purchases and sales of merchandise Donovan, Inc. had the following sales and purchase transactions during Year 2 . Beginning inventeon consisted of 120 items at $80 each. Donovan uses the FIFO cost flow assumption and keeps perpetefil inventory records. Required a. Record the inventory transactions in a financial statements model. b. Calculate the gross margin Donovan would report on the Year 2 income statement. c. Determine the ending inventory balance Donovan would report on the December 31 , Year 2 balance sheet. Problem 20B