Proration

Proration is the spreading of underallocated manufacturing overhead or overallocated manufacturing overhead among ending work in process, finished goods, and cost of goods sold.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Proration. The spreading of underallocated manufacturing overhead or overallocated manufacturing overhead among ending work in process, finished goods, and cost of goods sold.