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Question - The following information for Dorado Corporation relates to the three-month period ending September 30.
Units Price per Unit Sales 475,000 $46
Beginning inventory 45,000 28
Purchases 450,000 34
Ending inventory 20,000 ?
Dorado expects to purchase 200,000 units of inventory in the fourth quarter of the current calendar year at a cost of $35 per unit, and to have on hand 65,000 units of inventory at year-end. Dorado uses the last-in, first-out (LIFO) method to account for inventory costs.
Required -
1. Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30.
2. Prepare journal entries to reflect these amounts.
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