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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
Customer Millard Schmidt Date February 14, 20Y1
Address 315 White Oak Drive Columbus, GA Date wanted March 15, 20Y1
Date completed March 9, 20Y1
Item Reupholster couch and chair Job. No. 02-019
ESTIMATE
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

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