Calculation of cost of goods sold: periodic inventory system with sales returns and allowances

the following amounts are known for adams gift shop:

beginning merchandise inventory $27,000
ending merchandise inventory 22,000
purchases 78,000
purchases returns and allowances 3,900
purchases discounts 6,000
freight-in 350

assume the business makes estimates for sales returns and allowances at year-end. the balances for estimated returns inventory are shown. beginning estimated returns inventory $2,000 ending estimated returns inventory 1,600 prepare the cost of goods sold section of the income statement.

Nichols inc. manufactures remote controls. currently the company uses a plantminuswide rate for allocating manufacturing overhead. the plant manager is considering switchingminusover to abc costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows: activities cost driver allocation rate material handling number of parts $5 per part assembly labor hours $20 per hour inspection time at inspection station $10 per minute the current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $20 per labor hour. what are the indirect manufacturing costs per remote control assuming an method is used and a batch of 10 remote controls are produced? the batch requires 100 parts, 5 direct manufacturing labor hours, and 3 minutes of inspection time.