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The following information for Dorado Corporation relates to the three-month period ending September 30. Units Price per Unit Sales 500,000 $ 51 Beginning inventory 50,000
The following information for Dorado Corporation relates to the three-month period ending September 30.
Units | Price per Unit | |||||
Sales | 500,000 | $ | 51 | |||
Beginning inventory | 50,000 | 33 | ||||
Purchases | 475,000 | 39 | ||||
Ending inventory | 25,000 | ? | ||||
Dorado expects to purchase 225,000 units of inventory in the fourth quarter of the current calendar year at a cost of $40 per unit, and to have on hand 75,000 units of inventory at year-end. Dorado uses the last-in, first-out (LIFO) method to account for inventory costs.
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Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30.
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Prepare journal entries to reflect these amounts.
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