Companyperforms market research for consumer product companies across the country. The company conducts telephone surveys and gathers consumers together in focus groups to review foods, cleaning products, and toiletries.Company uses a normal-costing system with one direct-cost pool, labor, and one indirect-cost pool, general overhead. General overhead is allocated to each job based on 120% of direct labor cost. Actual overhead equaled allocated overhead as ofApril 30, 2007 . Actual overhead in Maywas 93,160.

Required:

1.Calculate JIP at the end of May.

2.Calculate CCJ for May.

3.Calculateunder- or overallocated overhead at the end of May.

4.Calculate the ending balances in JIP and CCJ if theunder- or overallocated overhead amount is asfollows:

a.Written off to CCJ

b.Prorated based on the ending balances(before proration) in JIP and CCJ

c.Prorated based on the overhead allocated in May in the ending balances of JIP and CCJ(before proration)

5.Which method would youchoose? Explain. Would your choice depend on whether overhead cost is underallocated oroverallocated? Explain.

Additional info:

All costs incurred during the planning stage for a market research job and during the job are gathered in a balance sheet account called"Jobs in Progress(JIP)." When a job iscompleted, the costs are transferred to an income statement account called"Cost of Completed Jobs(CCJ)."