Book Signings, Inc. (BSI) schedules book signings for science fiction authors and creates e-books and books on CD to sell at each signing. BSI uses a normal costing system with two direct costs materials and labor, and one indirect cost general overhead. General overhead is allocated to each signing based on 80% of labor cost. Actual overhead equaled allocated overhead in March. Actual overhead in April was $1,980. All costs incurred during the planning stage for a signing and during the signing are gathered in a balance sheet account called Signings in Progress (SIP). When a signing is completed, the costs are transferred to an income statement account called Cost of Completed Signings (CCS). Following is cost information for April:

	From Beginning SIP		Incurred in April
Author	Materials	Labor	Materials	Labor
N. Asher	$425	$750	$90	$225
T. Bucknell	710	575	150	75
S. Brown	200	550	320	450
S. King			650	400
D. Sherman			150	200

The following information relates to April:

As of April 1, there were three signings in progress: N. Asher, T. Bucknell, and S. Brown. Signings for S. King and D. Sherman were started during April. The signings for T. Bucknell and S. King were completed during April.

REQUIRED (MUST SHOW CALCULATIONS):

1. Calculate SIP at the end of April.

2. Calculate CCS for April.

3. Calculate under/overapplied overhead at the end of April.

4. Calculate the ending balances in SIP and CCS if the under/overapplied overhead amount is disposed of as follows:

(a) Written off to CCS.

(b) Prorated based on the ending balances (Materials, Labor and Overhead) in SIP and CCS.

(c) Prorated based on the overhead allocated in April only in the ending balances of SIP and CCS.

5. Which of the methods in (4) would you choose? Why?