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 prosective 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 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 : 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 cost) 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 requies and time tickets are summarized as follows: Materials Requisiton No. Description Amount 112 140sq.ft. at $35 $4,900 114 68 sq.ft. at $35 2380 Time Ticket No. Description Amount H10 10hours at $20 $200 H11 10hours 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 aand estimated 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.
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.
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 prosective customer asks for a price quote on a job, the estimated cost data are inserted on an unnumbered
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 cost) | 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 requies and time tickets are summarized as follows:
| Materials Requisiton No. | Description | Amount |
| 112 | 140sq.ft. at $35 |
$4,900 |
| 114 | 68 sq.ft. at $35 | 2380 |
| Time Ticket No. | Description | Amount |
| H10 | 10hours at $20 | $200 |
| H11 | 10hours 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 aand estimated 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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