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Required information The following information applies to the questions displayed below Pams Creations had the following sal
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Answer #1

a)

Calculation of cost of goods sold andclosing inventory under FIFO (Perpetual)
TransactionType Cost of goods sold Closing inventory
Date Particulars Qty Rate Amount($) Qty Rate Amount($) Qty Rate Amount($)
01-Jan Beginning   inventory 130 81 10,530 130 81 10,530
05-Mar purchase 110 91 10,010 130 81 10,530
110 91 10,010
10-Apr sale 75 81 6,075 55 81 4,455
110 91 10,010
19-Jun sale 55 81 4,455 40 91 3,640
70 91 6,370
16-Sep purchase 60 96 5,760 40 91 3,640
60 96 5,760
28-Nov sale 40 91 12,190 35 96 3,360
25 96 2,775
Total / Balance 300 26,300 265 31,865 35 3,360.00
  Date      Account   Titles and Explanation      Debit      Credit   
  Mar.   5    Merchandise   Inventory    10,010
      Accounts Payable    10,010
  Apr.   10    Accounts Receivable/Cash 13275
      Sales Revenue    13275
  Apr.   10      Cost of goods sold    6,075
   Merchandise inventory    6,075
  June   19    Accounts Receivable/Cash 22125
Sales Revenue 22125
  June   19      Cost of goods sold    10,825
         Merchandise inventory    10,825
  Sept.   16       Merchandise   Inventory    5,760
   Accounts Payable    5,760
  Nov.   28       Accounts Receivable    11830
   Sales Revenue    11830
  Nov.   28      Cost of goods sold    14,965
         Merchandise inventory    14,965

b)Gross Margin = 47,230 - 31,865

=15,365

c)Ending Inventory = 35 Units Value of $ 3,360

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