and Trim Carpet Company sells and InstalIs comme arpeting for office buildings. Stre Trim Carpet Company uses JOD 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. 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 May 9, Stretch and Trim gave Lunden Consulting an estimate of $18,044 to carpet the consulting firm's newly leased office. The estimate was based on the following data: Estimated direct materials: 400 meters at $32 per meter $12,800 Estimated direct labor: 30 hours at $20 per hour 600 Estimated factory overhead (80% of direct labor cost) 480 Total estimated costs $13,880 Markup (30% of production costs) 4,164 Total estimate $18,044 On May 10, Lunden Consulting signed a purchase contract, and the carpet was delivered and installed on May 15. The related materials requisitions and time tickets are summarized as follows: Materials Requisition No. Description Amount 132 360 meters at $32 $11,520 134 50 meters at $32 1,600 Time Ticket No. Description Amount H9 18 hours at $19 $342
and Trim Carpet Company sells and InstalIs comme arpeting for office buildings. Stre Trim Carpet Company uses JOD 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. 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 May 9, Stretch and Trim gave Lunden Consulting an estimate of $18,044 to carpet the consulting firm's newly leased office. The estimate was based on the following data: Estimated direct materials: 400 meters at $32 per meter $12,800 Estimated direct labor: 30 hours at $20 per hour 600 Estimated factory overhead (80% of direct labor cost) 480 Total estimated costs $13,880 Markup (30% of production costs) 4,164 Total estimate $18,044 On May 10, Lunden Consulting signed a purchase contract, and the carpet was delivered and installed on May 15. The related materials requisitions and time tickets are summarized as follows: Materials Requisition No. Description Amount 132 360 meters at $32 $11,520 134 50 meters at $32 1,600 Time Ticket No. Description Amount H9 18 hours at $19 $342
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:H12
18 hours at $19
342
Required:
Enter amounts as positive numbers. Round answers to the nearest whole dollar.
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
Customer
Lunden Consulting
Date
May 9
Date wanted
May 15
Date completed
May 15
Job. No.
ESTIMΑΤΕ
Direct Materials
Direct Labor
Summary
Amount
Amount
Amount
400 meters at $32
30 hours at $20
Direct Materials
Direct Labor
Factory Overhead
Total
Total
Total cost
ACTUAL
Transcribed Image Text:Stretch and Trim Carpet Company sells and installs commercial carpeting for office buildings. Stretch and Trim 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 May 9, Stretch and Trim gave Lunden Consulting an estimate of $18,044 to carpet the consulting firm's newly leased office. The estimate was based on the
following data:
Estimated direct materials:
400 meters at $32 per meter
$12,800
Estimated direct labor:
30 hours at $20 per hour
600
Estimated factory overhead (80% of direct labor cost)
480
Total estimated costs
$13,880
Markup (30% of production costs)
4,164
Total estimate
$18,044
On May 10, Lunden Consulting signed a purchase contract, and the carpet was delivered and installed on May 15.
The related materials requisitions and time tickets are summarized as follows:
Materials Requisition No.
Description
Amount
132
360 meters at $32
$11,520
134
50 meters at $32
1,600
Time Ticket No.
Description
Amount
H9
18 hours at $19
$342
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