The Ride minus on minus Wave Company (ROW) produces a line of non-motorized boats. ROW uses a normal-costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2014

Budgeted manufacturing overhead cost $135,000

Bugetgeted direct manifacturing labor cost $225,000

Actual manufacturing overhead cost $134,400

Actual direct manufacturing labor cost $229,000

2014 direct manufacturing Account,Ending Balance, labor cost in ending balance Work in process,"$33,400","$18,320" Finished goods,"225,450","64,120" Cost of goods sold,"576,150","146,560"

3.	Calculate the ending balances in work in process, finished goods, and cost of goods sold if under- or overallocated overhead is as follows:

	a.	Written off to cost of goods sold.
.	b.	Prorated based on ending balances (before proration) in each of the three accounts.
	c.	Prorated based on the overhead allocated in 2014

in the ending balances (before proration) in each of the three accounts.

4.	Which method would you choose? Justify your answer.