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 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 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 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 proven to be satisfactory, and an inexperienced employee performed the work.

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 19, Problem 19.3APR
Textbook Problem

Job order cost sheetRemnant 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 available to management in evaluating the efficiency of operations and in preparing quotes on future jobs. On October 1, Remnant Carpet Company gave JacksonConsulting 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 Instructions1. 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 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 proven to be satisfactory, and an inexperienced employee performed the work.

Expert Solution

(1)

To determine

Job cost sheet:

Job cost sheet is a document which is used to record manufacturing costs. It is prepared by the company which makes use of job costing system for computation and allocation of cost to products. It is a subsidiary ledger to work in process account as it contains all information about jobs.

To prepare: An estimate to be given in job cost sheet by Company RC.

Explanation of Solution

Prepare job order cost sheet for estimate as follows:

Expert Solution

(2)

To determine

To prepare: job order cost sheet by Company RC for actual cost incurred.

Want to see the full answer?

Check out a sample textbook solution.See solution

Want to see this answer and more?

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

See solution

Find more solutions based on key concepts
Show solutions
Describe the major components of a TQM program.

Foundations of Business (MindTap Course List)

What is a loan amortization schedule, and what are some ways these schedules are used?

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

Who are some of the basic users of financial statements, and how do they use them?

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

BEP, ROE, AND ROIC Duval Manufacturing recently reported the following information: Net income 600,000 ROA 8% ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Briefly explain what is meant by the term efficiency continuum.

Fundamentals of Financial Management (MindTap Course List)

What is driver analysis? What role does it play in process value analysis?

Cornerstones of Cost Management (Cornerstones Series)

What is the Laffer curve? What are the important implications of the Laffer curve?

Microeconomics: Private and Public Choice (MindTap Course List)