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

		Units		Price per Unit
Sales		525,000		$	56
Beginning inventory		55,000			38
Purchases		500,000			44
Ending inventory		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.

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

2. Prepare journal entries to reflect these amounts.