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The following information for Dorado Corporation relates to the three-month period ending September 30. Units Price per Unit Sales 480,000 $ 47 Beginning inventory 46,000

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

Units Price per Unit
Sales 480,000 $ 47
Beginning inventory 46,000 29
Purchases 455,000 35
Ending inventory 21,000 ?

Dorado expects to purchase 205,000 units of inventory in the fourth quarter of the current calendar year at a cost of $36 per unit, and to have on hand 67,000 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.

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