Question
Hallmark Furniture Company refinishes and reupholsters furniture. Hallmark Furniture uses a job order cost system. When a prospective customer asks for a price quote on
Hallmark Furniture Company refinishes and reupholsters furniture. Hallmark Furniture 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 February 14, 20Y1, an estimate of $897.60 for reupholstering a chair and couch was given to Millard Schmidt. The estimate was based on the following data:
Estimated direct materials: | |
12 meters at $9 per meter | $108.00 |
Estimated direct labor: | |
32 hours at $16 per hour | 512.00 |
Estimated factory overhead (25% of direct labor cost) | 128.00 |
Total estimated costs | $748.00 |
Markup (20% of production costs) | 149.60 |
Total estimate | $897.60 |
On February 17, the chair and couch were picked up from the residence of Millard Schmidt, 315 White Oak Drive, Columbus, Georgia, with a commitment to return them on March 15. The job was completed on March 9.
The related materials requisitions and time tickets are summarized as follows:
Materials Requisition No. | Description | Amount | |
122 | 9 meters at $9 | $81 | |
129 | 7 meters at $9 | 63 |
Time Ticket No. | Description | Amount | |
T344 | 20 hours at $14 | $280 | |
T348 | 18 hours at $14 | 252 |
Instructions:
1. Complete the portion of the job cost sheet that would be prepared when the estimate is given to the customer.
2. Assign number 02-019 to the job, record the actual costs incurred, and complete the job cost sheet.
JOB COST SHEET | |||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||
Direct Materials | Direct Labor | Summary | |||||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | |||||||||||||||||||||||||||||||||||||||||||||
12 meters at $9 | $fill in the blank 1 | 32 hours at $16 | $fill in the blank 2 | Direct materials | $fill in the blank 3 | ||||||||||||||||||||||||||||||||||||||||||
Direct labor | fill in the blank 4 | ||||||||||||||||||||||||||||||||||||||||||||||
Factory overhead | fill in the blank 5 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $fill in the blank 6 | Total | $fill in the blank 7 | Total cost | $fill in the blank 8 | ||||||||||||||||||||||||||||||||||||||||||
ACTUAL | |||||||||||||||||||||||||||||||||||||||||||||||
Direct Materials | Direct Labor | Summary | |||||||||||||||||||||||||||||||||||||||||||||
Mat. Req. No. | Description | Amount | Time Ticket No. | Description | Amount | Item | Amount | ||||||||||||||||||||||||||||||||||||||||
122 | 9 meters at $9 | $fill in the blank 9 | T344 | 20 hours at $14 | $fill in the blank 10 | Direct materials | $fill in the blank 11 | ||||||||||||||||||||||||||||||||||||||||
129 | 7 meters at $9 | fill in the blank 12 | T348 | 18 hours at $14 | fill in the blank 13 | Direct labor | fill in the blank 14 | ||||||||||||||||||||||||||||||||||||||||
Factory overhead | fill in the blank 15 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $fill in the blank 16 | Total | $fill in the blank 17 | Total cost | $fill in the blank 18 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started