# Job order cost sheet Stretch and Trim Carpet Company sells and installs commercial carpeting for office buildings. Stretch and Trim 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 officer 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 for management to use in evaluating the efficiency of operations and in preparing quotes on future jobs. On May 9, Stretch and Trim gave Lunden Consulting an estimate of \$18,044 to carpet the Consulting firm’s newly leased office. The estimate was based on the following data: Estimated direct materials: 400 sq. ft at \$32 per sq. ft.................................. \$12,800 Estimated direct labor: 30 hours at \$20 per hour................................... 600 Estimated factory overhead (80% of direct labor cost)........... 480 Total estimated costs......................................... \$13,880 Markup ( 30% of production costs)............................. 4,164 Total estimate................................................ \$18,044 On May 10, Lunden Consulting signed a purchase contract, and the carpet was delivered and installed on May 15. The related materials requisitions and time tickets are .summarized as follows: Materials Requisition No. Description Amount 132 360 sq. ft. at \$32 \$11,520 134 50 sq. ft. at \$32 1,600 Time Ticket No. Description Amount H9 18 hours at \$19 \$342 H12 18 hours at \$19 342 Instructions 1. Complete that portion of the job order cost sheet that would he prepared when the estimate is given to the customer. Round factory' overhead applied to the nearest dollar. 2. Record the costs incurred and prepare a job order cost sheet. Comment on the reasons for the variances between actual cost 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 19.3BPR
Textbook Problem

## Expert Solution

### 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
What is trade associations role in encouraging ethics?

Foundations of Business (MindTap Course List)

What is data mining?

Accounting Information Systems

REGRESSION AND INVENTORIES jasper Furnishings has 300 million in sales. The company expects that its sales will...

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