Allocating product costs between cost of goods sold and ending inventory: intermittent purchases and sales of merchandise
Lacey, Inc., had the following sales and purchase transactions during 2011. Beginning inventor) consisted of 80 items at $120 each. Lacey uses the FIFO cost flow assumption and keeps perpetual inventory records.
Date | Transaction | Description |
Mar. 5 | Purchased | 80 items @ $125 |
Apr. 10 | Sold | 60 items @ $245 |
June 19 | Sold | 70 items @ $245 |
Sept. 16 | Purchased | 60 items @ $130 |
Nov. 28 | Sold | 55 items @ $255 |
a. Record the inventory transactions in general journal format.
b. Calculate the gross margin Lacey would report on the 2011 income statement.
c. Determine the ending inventory balance Lacey would report on the December 31, 2011, balance sheet.
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