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

		Units		Price per Unit
Sales		510,000		$	53
Beginning inventory		52,000			35
Purchases		485,000			41
Ending inventory		27,000			?

Dorado expects to purchase 235,000 units of inventory in the fourth quarter of the current calendar year at a cost of $42 per unit, and to have on hand 79,000 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.

Required A.

Cost of goods sold
Gross profit

Required B.

Transaction	General Journal	Debit	Credit
1	Cash or accounts receivable
	Sales revenue