EXERCISE 74 Second-Stage Allocation LO74

Klumper Corporation is a diversified manufacturer of industrial goods. The companys activity-based costing system contains the following six activity cost pools and activity rates:

Activity Cost Pool	Activity Rates
Supporting direct labor	$6 per direct labor-hour
Machine processing	$4 per machine-hour
Machine setups	$50 per setup
Production orders	$90 per order
Shipments	$14 per shipment
Product sustaining	$840 per product

Activity data have been supplied for the following two products:

	Total Expected Activity
	K425	M67
Number of units produced per year	200	2,000
Direct labor-hours	80	500
Machine-hours	100	1,500
Machine setups	1	4
Production orders	1	4
Shipments	1	10
Product sustaining	1	1

Required:

How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?

RAINTREE COSMETIC COMPANY General Journal Credit 10 Account Debit Requirement 1: To record accounts receivable written off during the year 2021: Allowance for uncollectible accounts Accounts receivable To record collection of account receivable previously written off. Accounts receivable Allowance for uncollectible accounts Cash Accounts receivable Debit Credit Requirement 2(a): Account Bad debt expense Allowance for uncollectible accounts Requirement 2(b): Accounts receivable analysis: Beginning balance Add: Credit sales Less: Write-offs Less: Cash collections Ending balance Required allowance for uncollectible accounts Allowance for uncollectible accounts analysis: Beginning balance Allowance for uncollectible accounts analysis: Beginning balance Add: Collection of receivable previously written off Less: Write-offs Balance before adjustments Required allowance (determined above) Bad debt expense adjustment 49 Debit Credit Account Bad debt expense Allowance for uncollectible accounts 51 52 Requirement 2(c): RAINTREE COSMETIC COMPANY Required Allowance Percent Estimated Uncollectible Allowance Amount 4% Age Group 0-60 days 61-90 days 91-120 days Over 120 days Totals % of Year-end Receivables 65% 20% 10% 5% 15% 25% 40% Allowance for uncollectible accounts analysis: Beginning balance Add: Collection of receivable previously written off Less: Write-offs Balance before adjustments Required allowance Bad debt expense adjustment fic 01 A - B C D E F G H 77 Debit Credit 78 79 Account Bad debt expense Allowance for uncollectible accounts Requirement 3: RAINTREE COSMETIC COMPANY Net Amount of Accounts Receivable Accounts Receivable Year-end Allowance Net Amount me