T-Mobile LTE 9:28 PM KBack Chapter 16 problem 16-3A.docx PR 16-3A-Job order cost sheet 1 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 $9,450 to carpet the consulting firm's newly leased office. The estimate was based on the following data Estimated direct materials: $7,000 200 meters at $35 per meter Estimated direct labor 320 16 hours at $20 per hour Estimated factory overhead (75% ofdirect labor cost) Total estimated costs Markup (25% of production costs) Total estimate $7.560 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: 2 Materials Requisition No 3 Description Amount 5 112 6 140 meters at $35 7 $4,900 8 114 DashboardCalendar Notifications Inbox T-Mobile LTE 9:28 PM KBack Chapter 16 problem 16-3A.docx PR 16-3A-Job order cost sheet 1 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 $9,450 to carpet the consulting firm's newly leased office. The estimate was based on the following data Estimated direct materials: $7,000 200 meters at $35 per meter Estimated direct labor 320 16 hours at $20 per hour Estimated factory overhead (75% ofdirect labor cost) Total estimated costs Markup (25% of production costs) Total estimate $7.560 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: 2 Materials Requisition No 3 Description Amount 5 112 6 140 meters at $35 7 $4,900 8 114 DashboardCalendar Notifications Inbox
