27th Edition
WARREN + 5 others
ISBN: 9781337272094




27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

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 $35 2380
Time Ticket No. Description Amount
H10 10 hours at $20 $200
H11 10 hours at $20 200


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.


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.


Prepare job order cost sheet for estimate as follows:


To determine

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

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