Value Premium 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. Value Premium 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 $113,380. i (Click the icon for additional information about Value Premium.) Requirement 1. Calculate JIP at the end of May. Job Total More info Balance at the end of May 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 is completed, the costs are transferred to an income statement account called "Cost of Completed Jobs (CCJ). " - Requirements 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. C. Prorated based on the ending balances (before proration) in JIP and CCJ 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.) As of May 1, there were two jobs in progress: Nibble Candy Bars, and Blaze Toothpaste. The jobs for Maya Organic Salsa and Spangle Dish Liquid were started during May. The jobs for Nibble Candy Bars and Spangle Dish Liquid were completed during May. Read the requirements. Data table From Beginning JIP Incurred in May General Overhead Band Labor Allocated Labor Nibble Candy Bars $ Blaze Toothpaste 30,780 $ 14,140 23,000 8,000 $ 18,000 33,000 Maya Organic Salsa 20,500 Spangle Dish Liquid 5,200