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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.

BuyFind

Accounting

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

Accounting

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

Solutions

Chapter
Section
Chapter 19, Problem 19.3BPR
Textbook Problem

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.

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Chapter 19 Solutions

Accounting
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Ch. 19 - Issuance of materials On May 7, Bergan Company...Ch. 19 - Issuance of materials On August 4, Rothchild...Ch. 19 - Direct labor costs During May, Bergan Company...Ch. 19 - Direct labor costs During August, Rothchild...Ch. 19 - Factory overhead costs During May, Bergan Company...Ch. 19 - Factory overhead costs During August, Rothchild...Ch. 19 - Applying factory overhead Bergan Company estimates...Ch. 19 - Applying factory overhead Rothchild Company...Ch. 19 - Job costs At the end of May, Bergan Company had...Ch. 19 - Job costs At the end of August, Rothchild Company...Ch. 19 - Transactions in a job order cost system Five...Ch. 19 - Cost of materials issuances under the FIFO method...Ch. 19 - Entry for issuing materials Materials issued for...Ch. 19 - Entries for materials GenX Furnishings...Ch. 19 - Entry for factory labor costs A summary of the...Ch. 19 - Entry for factory labor costs The weekly time...Ch. 19 - Entries for direct labor and factory overhead...Ch. 19 - Factory overhead rates, entries and account...Ch. 19 - Predetermined factory overhead rate Street....Ch. 19 - Predetermined factory overhead rate Poehling...Ch. 19 - Entry for jobs completed; cost of unfinished jobs...Ch. 19 - Entries for factory costs and jobs completed Old...Ch. 19 - Financial statements of a manufacturing firm The...Ch. 19 - Decision making with job order costs Alvarez...Ch. 19 - Decision making with job order costs Raneri...Ch. 19 - Job order cost accounting for a Service company...Ch. 19 - Job order cost accounting for a service company...Ch. 19 - Entries for costs in a job order cost system...Ch. 19 - Entries and schedules for unfinished jobs and...Ch. 19 - Job order cost sheet Remnant Carpet Company sells...Ch. 19 - Analyzing manufacturing cost accounts Fire Rock...Ch. 19 - Flow of costs and income statement Ginocera Inc....Ch. 19 - Entries for costs in a job order cost system Royal...Ch. 19 - Entries and schedules for unfinished Jobs and...Ch. 19 - Job order cost sheet Stretch and Trim Carpet...Ch. 19 - Analyzing manufacturing cost accounts Clapton...Ch. 19 - Flow of costs and income statement Technology...Ch. 19 - Communication TAC Industries sells heavy equipment...Ch. 19 - Predetermined overhead rates As an assistant cost...Ch. 19 - Communication Carol Creedence, the plant manager...Ch. 19 - Job order decision making and rate deficiencies...Ch. 19 - Recording manufacturing costs Todd Lay just began...

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