Question $1$: Flow of Costs with Proration and $100\%$ COGS Adjustments

James Michael schedules autograph signings for football fans and creates posters to sell at each

signing. James uses a normal$-$costing system with two direct cost pools, labor and materials, and

one indirect cost pool, general overhead. General overhead is allocated to each signing based on

$70\%$ of labor cost. Actual overhead equaled allocated overhead in April $2023.$ Actual overhead in

May was $$1,000.$ 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 Signing $($CCS$).$ Following is cost information for May, $2023$:

From Beginning SIP Incurred in May

Athlete Materials Labor Overhead Materials Labor Overhead

Benji Binkleman $$500$ $$800?$ $$300$ $$200?$

Ravi Patel $$300$ $$1,000?$ $$700$ $$200?$

Rebecca Rampton $$600$ $$500?$ $$500$ $$900?$

The signings for Benji Binkleman and Ravi Patel were completed in May.

a$.$Calculate the SIP at the end of May.

b$.$ Calculate the CCS for May.

c$.$ Calculate the under$/$overallocated overhead at the end of May.

d$.$Calculate the ending balances in SIP and CCS if the under$/$overallocated overhead

amount is as follows:

i$.$ Written off to CCS

ii$.$ Prorated based on the ending balances $($before proration$)$ in SIP

and CCS$.$