Cost of goods sold and gross profit

The following information for Quadrado Corporation relates to the three-month period ending September 30, 2009.

Units Price Per Unit Sales.................... 110,000 $20 BeginningInventory........20,000 12 Purchases................. 100,000 14 Ending Inventory........... 10,000 0

Quadrado expects to purchase 150,000 units of inventory in the fourth quarter of 2009 at a cost of $15 per unit, and to have on hand 30,000 units of inventory at year-end. Quadrado uses the last in, first-out (LIFO) method to account for inventory costs.

Determine thecost of goods soldand grossprofitamounts to record for the three months ending September 30, 2009. Preparejournal entriesto reflect these amounts.