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Determine the cost of goods sold and gross profit amounts

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Reference no: EM132770446

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.

Problem a.) Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30.

Problem b.) Prepare journal entries to reflect these amounts.

Reference no: EM132770446

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