Pams Creations had the following sales and purchase transactions during 2016. 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 Mar. 5 Purchased 50 items @ $ 370 Apr. 10 Sold 30 items @ $ 450 June 19 Sold 60 items @ $ 450 Sept. 16 Purchased 70 items @ $ 390 Nov. 28 Sold 45 items @ $ 480

a. Calculate the gross margin Pams Creations would report on the 2016 income statement.

b.

Determine the ending inventory balance Pams Creations would report on the December 31, 2016, balance sheet.