Journalize the Following Transactions for Park Gift Shop

question 147

Essay

Journalize the following transactions for Park Gift Shop.Explanations are not required.Park uses a perpetual inventory system.
Mar.5: Purchased $4,400 of merchandise inventory on account,3/10,n/EOM and FOB shipping point.
Mar.9: Returned $700 of defective merchandise purchased on March 5.
Mar.11: Paid the freight bill of $250 on the March 5 purchase.

Mar.14: Paid amount owed on credit purchase of March 5,less the return and the discount.
Mar.30: Received cash from the March 12 customer in full settlement of the debt.

Calculate unit product costs using activity-based costing (ABC) method.

Compute predetermined overhead rates under traditional costing method.

Determine the overhead cost assigned to products under traditional costing method.

Compute activity rates under activity-based costing system.