Problem 5-20A (Algo) Allocating product costs between cost of goods sold and ending inventory: intermittent purchases and sales of merchandise LO 5-1 Skip to question [The following information applies to the questions displayed below.] Pams Creations had the following sales and purchase transactions during Year 2. Beginning inventory consisted of 230 items at $99 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records.

Date Transaction Description March 5 Purchased 290 items @ $109

April 10 Sold 165 items @ $213

June 19 Sold 305 items @ $213

September 16 Purchased 240 items @ $114

November 28 Sold 155 items @ $218 Problem 5-20A (Algo)

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

Sales
Cost of goods sold
Gross margin

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

	Ending inventory