The following information for Dorado Corporation relates to the three-month period ending September 30. ...
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Accounting
The following information for Dorado Corporation relates to the three-month period ending September 30.
| Units | Price per Unit | |||||
| Sales | 495,000 | $ | 50 | |||
| Beginning inventory | 49,000 | 32 | ||||
| Purchases | 470,000 | 38 | ||||
| Ending inventory | 24,000 | ? | ||||
Dorado expects to purchase 220,000 units of inventory in the fourth quarter of the current calendar year at a cost of $39 per unit, and to have on hand 73,000 units of inventory at year-end. Dorado uses the last-in, first-out (LIFO) method to account for inventory costs.
a. Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30.
b. Prepare journal entries to reflect these amounts.
- Record the entry for sales revenue.
- Record the entry for cost of good sold.
\begin{tabular}{|l|l|} \hline Cost of goods sold \\ \hline Gross profit \\ \hline \end{tabular}
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