The following information for Dorado Corporation relates to the three-month period ending September 30. Price per Sales Units 525,000 Unit $ 56 Beginning inventory Purchases 55,000 38 500,000 Ending inventory 30,000 44 ? Dorado expects to purchase 250,000 units of inventory in the fourth quarter of the current calendar year at a cost of $45 per unit, and to have on hand 85,000 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. Complete this question by entering your answers in the tabs below. Required A Required B Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30. Cost of goods sold Gross profit
The following information for Dorado Corporation relates to the three-month period ending September 30. Price per Sales Units 525,000 Unit $ 56 Beginning inventory Purchases 55,000 38 500,000 Ending inventory 30,000 44 ? Dorado expects to purchase 250,000 units of inventory in the fourth quarter of the current calendar year at a cost of $45 per unit, and to have on hand 85,000 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. Complete this question by entering your answers in the tabs below. Required A Required B Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30. Cost of goods sold Gross profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information for Dorado Corporation relates to the three-month period ending September 30.
Price per
Sales
Units
525,000
Unit
$ 56
Beginning inventory
Purchases
55,000
38
500,000
Ending inventory
30,000
44
?
Dorado expects to purchase 250,000 units of inventory in the fourth quarter of the current calendar year at a cost of $45 per unit, and
to have on hand 85,000 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.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30.
Cost of goods sold
Gross profit
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