Carlin Furniture Company refinishes and reupholsters furniture. Carlin uses a job order cost system. When a prospective

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Carlin Furniture Company refinishes and reupholsters furniture. Carlin uses a job order cost system. When a prospective customer asks for a price quote on a job, the estimated cost data are inserted on an unnumbered job cost sheet. If the offer is accepted, a number is assigned to the job, and the costs incurred are recorded in the usual manner on the job cost sheet. After the job is completed, reasons for the variances between the estimated and actual costs are noted on the sheet. The data are then available to management in evaluating the efficiency of operations and in preparing quotes on future jobs. On July 6, 2012, an estimate of $1,880.00 for reupholstering a sofa and loveseat was given to Justin Flannigan. The estimate was based on the following data:

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On July 10, the sofa and loveseat were picked up from the residence of Justin Flan-nigan, 310 Suzuki Drive, Lubbock, TX, with a commitment to return it on September 7.The job was completed on September 3. The related materials requisitions and time tickets are summarized as follows:

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1. Complete that portion of the job order cost sheet that would be prepared when the estimate is given to the customer.2. ?Assign number 12-211 to the job, record the costs incurred, and complete the job order cost sheet. Comment on the reasons for the variances between actual costs and estimated costs. For this purpose, assume that four meters of materials were spoiled, the factory overhead rate has been proved to be satisfactory, and an inexperienced employee performed the work.

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Accounting

ISBN: 9780538475006

24th Edition

Authors: Carl S Warren, James M Reeve, Jonathan Duchac

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