Solution-Determine the cost of goods sold and gross profit

Determine the cost of goods sold and gross profit

Reference no: EM132865000

Question - The following information for Dorado Corporation relates to the three-month period ending September 30.

	Units	Price per Unit
Sales	540,000	$59
Beginning inventory	58,000	41
Purchases	515,000	47
Ending inventory	33,000	?

Dorado expects to purchase 265,000 units of inventory in the fourth quarter of the current calendar year at a cost of $48 per unit and to have on hand 91,000 units of inventory at year-end. Dorado uses the last-in, first-out (LIFO) method to account for inventory costs.

Required - Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30. Prepare journal entries to reflect these amounts.

Reference no: EM132865000

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Determine the cost of goods sold and gross profit

Reference no: EM132865000

Reference no: EM132865000

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