The following information for Dorado Corporation relates to the three-month period ending September 30. Units Price per Unit Sales 425,000 $ 36 Beginning inventory 35,000 18 Purchases 400,000 24 Ending inventory 10,000 ? Dorado expects to purchase 150,000 units of inventory in the fourth quarter of the current calendar year at a cost of $25 per unit, and to have on hand 40,000 units of inventory at year-end. Dorado uses the last-in, first-out (LIFO) method to account for inventory costs. Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30. Prepare journal entries to reflect these amounts.
The following information for Dorado Corporation relates to the three-month period ending September 30. Units Price per Unit Sales 425,000 $ 36 Beginning inventory 35,000 18 Purchases 400,000 24 Ending inventory 10,000 ? Dorado expects to purchase 150,000 units of inventory in the fourth quarter of the current calendar year at a cost of $25 per unit, and to have on hand 40,000 units of inventory at year-end. Dorado uses the last-in, first-out (LIFO) method to account for inventory costs. Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30. Prepare journal entries to reflect these amounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information for Dorado Corporation relates to the three-month period ending September 30.
| Units | Price per Unit | |||||
| Sales | 425,000 | $ | 36 | |||
| Beginning inventory | 35,000 | 18 | ||||
| Purchases | 400,000 | 24 | ||||
| Ending inventory | 10,000 | ? | ||||
Dorado expects to purchase 150,000 units of inventory in the fourth quarter of the current calendar year at a cost of $25 per unit, and to have on hand 40,000 units of inventory at year-end. Dorado uses the last-in, first-out (LIFO) method to account for inventory costs.
-
Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30.
-
Prepare
journal entries to reflect these amounts.
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