The following information for Quadrado Corporation relates to the three month period ending September 30, 2011.
|
Units |
Price per Unit |
|
|
Sales |
110,000 |
$20 |
|
Beginning inventory |
20,000 |
12 |
|
Purchases |
100,000 |
14 |
|
Ending inventory |
10,000 |
–0– |
Quadrado expects to purchase 150,000 units of inventory in the fourth quarter of 2011 at a cost of $15 per unit, and to have on hand 30,000 units of inventory at year end. Quadrado uses the lastin, first out (LIFO) method to account for inventory costs. Determine the cost of goods sold and gross profit amounts to record for the three months ending September 30, 2011. Prepare journal entries to reflect these amounts.