10a. For the Gilmore Company, during the current year, merchandise is sold for $140,600 cash and $425,700 on account. The cost of the merchandise (goods) sold is $322,325. What is the amount of the gross profit?

10b. Reid Supply sells backpacks and other school supplies. The company uses a perpetual inventory system. During September, the following transactions and events occurred:

Sept. 4 Sold 70 backpacks at $30 each to Hunter Company, terms 2/10, n/30, F.O.B. Shipping Point.

Sept. 6 Gave credit of $150 for the return of 5 backpacks purchased on Sept. 4 that were defective.

Sept. 14 Received a check as payment in full from Hunter Company.

Instructions: Please write the journal entries for the September transactions for Reid Supply.

10c) The Vogel Company accumulates the following cost and market value data at December 31.

Market

Inventory Categories Cost Data Value Data

Camera $11,000 $9,900

Camcorders 7,800 8,500

DVDs 14,000 12,000

What is the lower-of-cost-or-market for each of the 3 items of inventory?

10d. At May 1, 2018, Bibby Company had beginning inventory consisting of 200 units with a unit cost of $7. During May, the company purchased inventory as follows:

800 units at $7

600 units at $8

The company sold 1,000 units during the month for $12 per unit. Bibby uses the average cost method.

What is the average cost per unit for May?

What is the value of Bibbys inventory at May 31, 2018?