Job order cost sheet Remnant Carpet Company sells and installs commercial carpeting for office buildings.Remnant Carpel 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 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 avaialble 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: 200 sq. ft. at $35 per sq. ft................................. $7,000 Estimated direct labor. 16 hours at $20 per hour ............................... 320 Estimated factory overhead ( 75% of direct labor cost).......... 240 Total estimated costs.................................................. $7,560 Markup (2S% of production costs)....................... 1,890 Total estimate.............................................................. $9,450 On October 3, Jackson Consulting signed a purchase contract, and the delivery and installation was completed on October 10. The related materials requisitions and time tickets are summarized as follows: Materials Requisition No. Description Amount 112 140 sq. ft. at $35 $4,900 114 68 sq. ft. at $35 2380 Time Ticket No. Description Amount H10 10 hours at $20 $200 H11 10 hours at $20 200 Instructions 1. Complete that portion of the job order cost sheet that is prepared when the estimate is given to the customer. 2. Record the costs incurred and prepare a job order cost sheet. Comment on the reasons for the variances between actual costs . For this purpose, assume that the additional square feet of material used in the job were spoiled, the factory overhead rate has proven to be satisfactory, and an inexperienced employee performed the work.

Job order cost sheet Remnant Carpet Company sells and installs commercial carpeting for office buildings.Remnant Carpel 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 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 avaialble 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: 200 sq. ft. at $35 per sq. ft................................. $7,000 Estimated direct labor. 16 hours at $20 per hour ............................... 320 Estimated factory overhead ( 75% of direct labor cost).......... 240 Total estimated costs.................................................. $7,560 Markup (2S% of production costs)....................... 1,890 Total estimate.............................................................. $9,450 On October 3, Jackson Consulting signed a purchase contract, and the delivery and installation was completed on October 10. The related materials requisitions and time tickets are summarized as follows: Materials Requisition No. Description Amount 112 140 sq. ft. at $35 $4,900 114 68 sq. ft. at $35 2380 Time Ticket No. Description Amount H10 10 hours at $20 $200 H11 10 hours at $20 200 Instructions 1. Complete that portion of the job order cost sheet that is prepared when the estimate is given to the customer. 2. Record the costs incurred and prepare a job order cost sheet. Comment on the reasons for the variances between actual costs . For this purpose, assume that the additional square feet of material used in the job were spoiled, the factory overhead rate has proven to be satisfactory, and an inexperienced employee performed the work.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Job order cost sheet

Remnant Carpet Company sells and installs commercial carpeting for office buildings.Remnant Carpel 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 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 avaialble 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:
200 sq. ft. at $35 per sq. ft.................................	$7,000
Estimated direct labor.
16 hours at $20 per hour ...............................	320
Estimated factory overhead ( 75% of direct labor cost)..........	240
Total estimated costs..................................................	$7,560
Markup (2S% of production costs).......................	1,890
Total estimate..............................................................	$9,450

On October 3, Jackson Consulting signed a purchase contract, and the delivery and installation was completed on October 10.

The related materials requisitions and time tickets are summarized as follows:

Materials Requisition No.	Description	Amount
112	140 sq. ft. at $35	$4,900
114	68 sq. ft. at $35	2380

Time Ticket No.	Description	Amount
H10	10 hours at $20	$200
H11	10 hours at $20	200

Instructions

1. Complete that portion of the job order cost sheet that is prepared when the estimate is given to the customer.

2. Record the costs incurred and prepare a job order cost sheet. Comment on the reasons for the variances between actual costs . For this purpose, assume that the additional square feet of material used in the job were spoiled, the factory overhead rate has proven to be satisfactory, and an inexperienced employee performed the work.

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