Job Order Cost Sheet Remnant Carpet Company sells and installs commercial carpet

Question

Job Order Cost Sheet

Remnant Carpet Company sells and installs commercial carpeting for office buildings. Remnant 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 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 October 1, Remnant Carpet Company gave Jackson Consulting an estimate of $2,254 to carpet the consulting firm’s newly leased office. The estimate was based on the following data:

On October 3, Jackson Consulting signed a purchase contract, and the delivery and installation were completed on October 10.

The related materials requisitions and time tickets are summarized as follows:

Required:

Enter amounts as positive numbers.

1. Complete that portion of the job order cost sheet that would be prepared when the estimate is given to the customer.

2. Record the costs incurred, and complete the job order cost sheet.

Estimated direct materials: 30 meters at $35 per meter $ 1,050 Estimated direct labor: 16 hours at $20 per hour 320 Estimated factory overhead (75% of direct labor cost) 240 Total estimated costs $1,610 Markup (40% of production costs) 644 Total estimate $2,254

Explanation / Answer

1 Job Order cost Sheet Estimate Direct Materials Direct labor Summary Amount Amount Amount $ $ $ 30 meters at $35 1050 16 Hours @ $20 320 Direct Materials 1050 Direct labor 320 Total 1050 Total 320 Factory Overhead 240 (320*75%) Total cost 1610 2 Job Order cost Sheet Actual Direct Materials Direct labor Summary Material Requsition Number Description Amount $ Time Ticket Number Amount $ Amount $ 112 15 meters at $35 525 H10 8 Hours @ $20 160 114 19 meters at $35 665 H11 12 Hours @ $20 240 Direct Materials 1190 Direct labor 400 Total 1190 Total 400 Factory Overhead 300 (400*75%) Total cost 1890

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