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Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883

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BuyFindarrow_forward

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883
Textbook Problem

Job cost sheet
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, 20YI, an estimate of $897.60 for reupholstering a chair and couch was given to Millard Schmidt. The estimate was based on the following data:


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:

Instructions

Assign number 02-019 to the job, record the costs incurred, and complete the job cost sheet.

To determine

Concept introduction:

Job Cost Sheet:

It is a sheet or a document that is prepared by the companies using job costing method. It shows the manufacturing costs of a product or service based on the job.

To prepare:

The job cost sheet providing the estimate and actual cost to the customer.

Explanation

JOB COST SHEET

Customer:

Millard     Date:

February 17

Address:

315, White Oak Drive, Columbus, Georgia    Date Wanted:

March 15

          Date Completed:

March 9

Item:

Chair and Couch     Job No. 02019

    ESTIMATE
    Direct MaterialDirect LabourSummary
      12
    meters at
      $9 per meter
    Amount
      $108
      32
    hours at
      $16 per hour
    Amount
      $512
    Direct Material
    Direct Labour
    Factory Overhead
      ($512×25%)
    Amount
      $108
      $512
      $128
    Total  $108Total  $108Total Cost  $748
    ACTUAL
    Direct MaterialDirect LabourSummary
    Mat

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