The following information for Dorado Corporation relates to the three-month period ending September 30. Units Price per
Question:
The following information for Dorado Corporation relates to the three-month period ending September 30.
| Units | Price per unit | ||
Sales | 465,000 | $ | 44 |
|
Beginning inventory | 43,000 |
| 266 |
|
Purchases | 440,000 |
| 32 |
|
Ending inventory | 18,000 |
| ? |
|
Dorado expects to purchase 190,000 units of inventory in the fourth quarter of the current calendar year at a cost of $33 per unit, and to have on hand 61,000 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.
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni