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 $3,250 to carpet the consulting firm’s newly leased office. The estimate was based on the following data: Estimated direct materials: 40 sq. ft. at $31 per sq. ft. $ 1,240 Estimated direct labor: 24 hours at $30 per hour 720 Estimated factory overhead (75% of direct labor cost) 540 Total estimated costs $2,500 Markup (30% of production costs) 750 Total estimate $3,250 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 20 sq. ft. at $31 $620 114 24 sq. ft. at $31 744 Time Ticket No. Description Amount H10 12 hours at $30 $360 H11 16 hours at $30 480 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 Customer Jackson Consulting Date October 1 Date wanted October 10 Date completed October 10 Job. No. ESTIMATE Direct Materials Direct Labor Summary Amount Amount Amount 40 sq. ft. at $31 $fill in the blank 44fb29fa0f82035_1 24 Hours at $30 $fill in the blank 44fb29fa0f82035_2 Direct Materials $fill in the blank 44fb29fa0f82035_3 Direct Labor fill in the blank 44fb29fa0f82035_4 Factory Overhead fill in the blank 44fb29fa0f82035_5 Total $fill in the blank 44fb29fa0f82035_6 Total $fill in the blank 44fb29fa0f82035_7 Total cost $fill in the blank 44fb29fa0f82035_8 ACTUAL Direct Materials Direct Labor Summary Mat. Req. No. Description Amount Time Ticket No. Description Amount Item Amount 310 20 sq. ft. at $31 $fill in the blank 44fb29fa0f82035_9 H10 12 Hours at $30 $fill in the blank 44fb29fa0f82035_10 Direct Materials $fill in the blank 44fb29fa0f82035_11 Direct Labor fill in the blank 44fb29fa0f82035_12 312 24 sq. ft. at $31 fill in the blank 44fb29fa0f82035_13 H11 16 Hours at $30 fill in the blank 44fb29fa0f82035_14 Factory Overhead fill in the blank 44fb29fa0f82035_15 Total $fill in the blank 44fb29fa0f82035_16 Total $fill in the blank 44fb29fa0f82035_17 Total Cost $fill in the blank 44fb29fa0f82035_18 What is the best explanation for the variances between actual costs and estimated costs? (For this purpose, assume that the additional square feet of material used in the job were spoiled, the factory overhead rate has been proved to be satisfactory, and an inexperienced employee performed the work.) The direct materials cost exceeded the estimate by $124 because 4 square feet of materials were spoiled. The direct labor cost exceeded the estimate by $120 because an additional 4 hours of labor were used by an inexperienced employee. The factory overhead cost exceeded the estimate because an additional $90 of factory overhead was allocated because of the increase in direct labor. Management didn't provide enough direction to complete tasks on budget. The direct materials cost exceeded the estimate by $93 because 3 square feet of materials were spoiled. The direct labor cost exceeded the estimate by $360 because an additional 4 hours of labor were used by an inexperienced employee. Select the correct answer from the above choices.

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 $3,250 to carpet the consulting firm’s newly leased office. The estimate was based on the following data: Estimated direct materials: 40 sq. ft. at $31 per sq. ft. $ 1,240 Estimated direct labor: 24 hours at $30 per hour 720 Estimated factory overhead (75% of direct labor cost) 540 Total estimated costs $2,500 Markup (30% of production costs) 750 Total estimate $3,250 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 20 sq. ft. at $31 $620 114 24 sq. ft. at $31 744 Time Ticket No. Description Amount H10 12 hours at $30 $360 H11 16 hours at $30 480 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 Customer Jackson Consulting Date October 1 Date wanted October 10 Date completed October 10 Job. No. ESTIMATE Direct Materials Direct Labor Summary Amount Amount Amount 40 sq. ft. at $31 $fill in the blank 44fb29fa0f82035_1 24 Hours at $30 $fill in the blank 44fb29fa0f82035_2 Direct Materials $fill in the blank 44fb29fa0f82035_3 Direct Labor fill in the blank 44fb29fa0f82035_4 Factory Overhead fill in the blank 44fb29fa0f82035_5 Total $fill in the blank 44fb29fa0f82035_6 Total $fill in the blank 44fb29fa0f82035_7 Total cost $fill in the blank 44fb29fa0f82035_8 ACTUAL Direct Materials Direct Labor Summary Mat. Req. No. Description Amount Time Ticket No. Description Amount Item Amount 310 20 sq. ft. at $31 $fill in the blank 44fb29fa0f82035_9 H10 12 Hours at $30 $fill in the blank 44fb29fa0f82035_10 Direct Materials $fill in the blank 44fb29fa0f82035_11 Direct Labor fill in the blank 44fb29fa0f82035_12 312 24 sq. ft. at $31 fill in the blank 44fb29fa0f82035_13 H11 16 Hours at $30 fill in the blank 44fb29fa0f82035_14 Factory Overhead fill in the blank 44fb29fa0f82035_15 Total $fill in the blank 44fb29fa0f82035_16 Total $fill in the blank 44fb29fa0f82035_17 Total Cost $fill in the blank 44fb29fa0f82035_18 What is the best explanation for the variances between actual costs and estimated costs? (For this purpose, assume that the additional square feet of material used in the job were spoiled, the factory overhead rate has been proved to be satisfactory, and an inexperienced employee performed the work.) The direct materials cost exceeded the estimate by $124 because 4 square feet of materials were spoiled. The direct labor cost exceeded the estimate by $120 because an additional 4 hours of labor were used by an inexperienced employee. The factory overhead cost exceeded the estimate because an additional $90 of factory overhead was allocated because of the increase in direct labor. Management didn't provide enough direction to complete tasks on budget. The direct materials cost exceeded the estimate by $93 because 3 square feet of materials were spoiled. The direct labor cost exceeded the estimate by $360 because an additional 4 hours of labor were used by an inexperienced employee. Select the correct answer from the above choices.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 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 $3,250 to carpet the consulting firm’s newly leased office. The estimate was based on the following data:

Estimated direct materials:
40 sq. ft. at $31 per sq. ft.	$ 1,240
Estimated direct labor:
24 hours at $30 per hour	720
Estimated factory overhead (75% of direct labor cost)	540
Total estimated costs	$2,500
Markup (30% of production costs)	750
Total estimate	$3,250

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	20 sq. ft. at $31	$620
114	24 sq. ft. at $31	744

Time Ticket No.	Description	Amount
H10	12 hours at $30	$360
H11	16 hours at $30	480

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

Customer	Jackson Consulting	Date	October 1
		Date wanted	October 10
		Date completed	October 10
		Job. No.
ESTIMATE

Direct Materials

Direct Labor

Summary

Amount

40 sq. ft. at $31

$fill in the blank 44fb29fa0f82035_1

24 Hours at $30

$fill in the blank 44fb29fa0f82035_2

Direct Materials

$fill in the blank 44fb29fa0f82035_3

Direct Labor

fill in the blank 44fb29fa0f82035_4

Factory Overhead

fill in the blank 44fb29fa0f82035_5

Total

$fill in the blank 44fb29fa0f82035_6

Total

$fill in the blank 44fb29fa0f82035_7

Total cost

$fill in the blank 44fb29fa0f82035_8

ACTUAL

Direct Materials

Direct Labor

Summary

Mat. Req. No.

Description

Amount

Time Ticket No.

Description

Amount

Item

Amount

310

20 sq. ft. at $31

$fill in the blank 44fb29fa0f82035_9

H10

12 Hours at $30

$fill in the blank 44fb29fa0f82035_10

Direct Materials

$fill in the blank 44fb29fa0f82035_11

Direct Labor

fill in the blank 44fb29fa0f82035_12

312

24 sq. ft. at $31

fill in the blank 44fb29fa0f82035_13

H11

16 Hours at $30

fill in the blank 44fb29fa0f82035_14

Factory Overhead

fill in the blank 44fb29fa0f82035_15

Total

$fill in the blank 44fb29fa0f82035_16

Total

$fill in the blank 44fb29fa0f82035_17

Total Cost

$fill in the blank 44fb29fa0f82035_18

What is the best explanation for the variances between actual costs and estimated costs? (For this purpose, assume that the additional square feet of material used in the job were spoiled, the factory overhead rate has been proved to be satisfactory, and an inexperienced employee performed the work.)

The direct materials cost exceeded the estimate by $124 because 4 square feet of materials were spoiled. The direct labor cost exceeded the estimate by $120 because an additional 4 hours of labor were used by an inexperienced employee. The factory overhead cost exceeded the estimate because an additional $90 of factory overhead was allocated because of the increase in direct labor.
Management didn't provide enough direction to complete tasks on budget.
The direct materials cost exceeded the estimate by $93 because 3 square feet of materials were spoiled.
The direct labor cost exceeded the estimate by $360 because an additional 4 hours of labor were used by an inexperienced employee.

Select the correct answer from the above choices.

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