Question
Job Order Cost Sheet Remnant Carpet Company sells and installs commercial carpeting for office buildings. Remnant Carpet Company uses a job order cost system. When
Job Order Cost Sheet
Remnant Carpet Company sells and installs commercial carpeting for office buildings. Remnant Carpet Company 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 October 1, Remnant Carpet Company gave Jackson Consulting an estimate of $3,094 to carpet the consulting firms newly leased office. The estimate was based on the following data:
| Estimated direct materials: | |
| 40 meters at $35 per meter | $ 1,400 |
| Estimated direct labor: | |
| 28 hours at $20 per hour | 560 |
| Estimated factory overhead (75% of direct labor cost) | 420 |
| Total estimated costs | $2,380 |
| Markup (30% of production costs) | 714 |
| Total estimate | $3,094 |
On October 3, Jackson Consulting signed a purchase contract, and the delivery and installation were completed on October 10.
The related materials requisitions and time tickets are summarized as follows:
| Materials Requisition No. | Description | Amount | |
| 112 | 20 meters at $35 | $700 | |
| 114 | 24 meters at $35 | 840 | |
| Time Ticket No. | Description | Amount | |
| H10 | 14 hours at $20 | $280 | |
| H11 | 18 hours at $20 | 360 | |
Required:
Enter amounts as positive numbers.
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 complete the job order cost sheet.
| JOB ORDER COST SHEET | |||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||
| Direct Materials | Direct Labor | Summary | |||||||||||||||||||||||||||||||||||||||||||||
| Amount | Amount | Amount | |||||||||||||||||||||||||||||||||||||||||||||
| 40 Meters at $35 | $ | 28 Hours at $20 | $ | Direct Materials | $ | ||||||||||||||||||||||||||||||||||||||||||
| Direct Labor | |||||||||||||||||||||||||||||||||||||||||||||||
| Factory Overhead | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | Total | $ | Total cost | $ | ||||||||||||||||||||||||||||||||||||||||||
| ACTUAL | |||||||||||||||||||||||||||||||||||||||||||||||
| Direct Materials | Direct Labor | Summary | |||||||||||||||||||||||||||||||||||||||||||||
| Mat. Req. No. | Description | Amount | Time Ticket No. | Description | Amount | Item | Amount | ||||||||||||||||||||||||||||||||||||||||
| 112 | 20 Meters at $35 | $ | H10 | 14 Hours at $20 | $ | Direct Materials | $ | ||||||||||||||||||||||||||||||||||||||||
| Direct Labor | |||||||||||||||||||||||||||||||||||||||||||||||
| 114 | 24 Meters at $35 | H11 | 18 Hours at $20 | Factory Overhead | |||||||||||||||||||||||||||||||||||||||||||
| Total | $ | Total | $ | Total Cost | $ | ||||||||||||||||||||||||||||||||||||||||||
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