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
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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 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 $3,318 for reupholstering a chair and couch was given to Millard Schmidt. The estimate was based on the following data:
Estimated direct materials: 30 meters at $30 per meter $ 900 Estimated direct labor: 28 hours at $30 per hour 840 Estimated factory overhead (75% of direct labor cost) 630 Total estimated costs $2,370 Markup (40% of production costs) 948 Total estimate $3,318
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 15 meters at $30 $450 129 19 meters at $30 570 Time Ticket No. Description Amount T344 14 hours at $30 $420 T348 18 hours at $30 540 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 Date wanted March 15, 20Y1 Columbus, GA Date completed March 9, 20Y1 Item Reupholster couch and chair Job. No. 02-019 ESTIMATE Direct Materials Direct Labor Summary Amount Amount Amount 30 Meters at $30 $fill in the blank 1 28 Hours at $30 $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 15 Meters at $30 $fill in the blank 9 T344 14 Hours at $30 $fill in the blank 10 Direct Materials $fill in the blank 11 Direct Labor fill in the blank 12 129 19 Meters at $30 fill in the blank 13 T348 18 Hours at $30 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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