The following information for Dorado Corporation relates to the three-month period ending September 30. Price per Unit $ 56 Sales Beginning inventory Purchases Ending inventory Units 525,000 55,000 500,000 30,000 38 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.
The following information for Dorado Corporation relates to the three-month period ending September 30. Price per Unit $ 56 Sales Beginning inventory Purchases Ending inventory Units 525,000 55,000 500,000 30,000 38 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The following information for Dorado Corporation relates to the three-month period ending September 30.
Price per
Unit
$ 56
38
44
?
Sales
Beginning inventory
Purchases
Ending inventory
Units
525,000
55,000
500,000
30,000
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.
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