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and to support the balance in the finished goods PR 2.3A Job order cost sheet Remnant Carpet Company sells and installs commercial carpeting for office

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and to support the balance in the finished goods PR 2.3A Job order cost sheet Remnant Carpet Company sells and installs commercial carpeting for office nant Carpet Company uses a job order a price quote on a job, the estimated cost data are inserted on sh Obj. 2 buildings. Rem- cost system. When a prospective customer asks for job cost eet. 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 October 1, Remnant Carpet Company gave Jackson Consulting an estimate of $9,450 to carpet the consulting firm's newly leased office. The estimate was an unnumbered based on the following data: Estimated direct materials: $7,000 200 meters at $35 per meter Estimated direct labor 16 hours at $20 per hour Estimated factory overhead (75% of direct labor cost. Total estimated costs 320 240 $7.560 1,890 S9450 . . . . . .. Total estimate On October 3, Jackson Consulting signed a purchase contract, and the delivery and instal- The related materials requisitions and time tickets are summarized as follows: Materials Requisition No. Description 140 meters at $35 68 meters at $35 Amount $4,900 114 Time Ticket No. H10 H11 Description 10 hours at $20 10 hours at $20 2,380 Amount $200 200 Instructions 1. Complete that portion of the job order cost sheet that would be prepared when the estimate is given to the customer. 2.Record the costs incurred, and prepare a job order cost sheet. Comment on the reasons for the variances between actual costs and estimated costs. For this purpose assume that the additional meters of material used in the job were spoiled, the factory overhead rate has proven to be satisfactory, and an inexperienced employee performed the work

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