Following is cost information for May 2017: (Click the icon to view the cost information for May 2017.) ChurnMark performs 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. ChurnMark 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 140% of direct labor cost. Actual overhead equaled allocated overhead as of April 30, 2017. Actual overhead in May was $119,740. A (Click the icon for additional information about ChurnMark.) As of May 1, there were two jobs in progress: Craze Candy Bars, and Flash Toothpaste. The jobs for Pico Organic Salsa and Sheen Dish Liquid were started during May. The jobs for Craze Candy Bars and Sheen Dish Liquid were completed during May. Read the requirements. Requirement 1. Calculate JIP at the end of May. Balance at the end of May Job Total 1 Data Table Incurred in May From Beginning JIP General Overhead Labor Allocated 45,260 $ 28,000 15,900 11,000 Band Labor $ $ Craze Candy Bars Flash Toothpaste Pico Organic Salsa Sheen Dish Liquid 14,000 38,000 21,600 5,500 Print Done 1. Calculate JIP at the end of May. 2. Calculate CCJ for May. 3. Calculate under- or overallocated overhead at the end of May. 4. Calculate the ending balances in JIP and CCJ if the under-or overallocated overhead amount is as follows: 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 you choose? Explain. Would your choice depend on whether overhead cost is underallocated or overallocated? Explain. Following is cost information for May 2017: (Click the icon to view the cost information for May 2017.) ChurnMark performs 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. ChurnMark 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 140% of direct labor cost. Actual overhead equaled allocated overhead as of April 30, 2017. Actual overhead in May was $119,740. A (Click the icon for additional information about ChurnMark.) As of May 1, there were two jobs in progress: Craze Candy Bars, and Flash Toothpaste. The jobs for Pico Organic Salsa and Sheen Dish Liquid were started during May. The jobs for Craze Candy Bars and Sheen Dish Liquid were completed during May. Read the requirements. Requirement 1. Calculate JIP at the end of May. Balance at the end of May Job Total 1 Data Table Incurred in May From Beginning JIP General Overhead Labor Allocated 45,260 $ 28,000 15,900 11,000 Band Labor $ $ Craze Candy Bars Flash Toothpaste Pico Organic Salsa Sheen Dish Liquid 14,000 38,000 21,600 5,500 Print Done 1. Calculate JIP at the end of May. 2. Calculate CCJ for May. 3. Calculate under- or overallocated overhead at the end of May. 4. Calculate the ending balances in JIP and CCJ if the under-or overallocated overhead amount is as follows: 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 you choose? Explain. Would your choice depend on whether overhead cost is underallocated or overallocated? Explain
