Concept explainers
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 $9,450 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:
Instructions
- 1. Complete that portion of the job cost sheet that would be prepared when the estimate is given to the customer.
- 2. Record the costs incurred, and prepare a job cost sheet. Comment on the reasons for the variances between actual costs and estimated costs. For this purpose, assume that the additional meters 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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Managerial Accounting
- Gerken Fabrication Inc. uses the job order cost system of accounting. The following information was taken from the companys books after all posting had been completed at the end of March: a. Compute the total production cost of each job. b. Prepare the journal entries to charge the costs of materials, labor, and factory overhead to Work in Process. c. Prepare the journal entry to transfer the cost of jobs completed to Finished Goods. d. Compute the unit cost of each job. e. Compute the selling price per unit for each job, assuming a mark-on percentage of 50%.arrow_forwardJob 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 $2,324 to carpet the consulting firm's newly leased office. The estimate was based on the following data: Estimated direct materials: 30 meters at $32 per meter $ 960 Estimated direct labor: 20 hours at $20 per hour 400 Estimated factory overhead (75% of…arrow_forwardJob 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 $2,704 to carpet the consulting firm’s newly leased office. The estimate was based on the following data: Estimated direct materials: 40 meters at $31 per meter $ 1,240 Estimated direct labor: 24 hours at $20 per hour 480 Estimated factory…arrow_forward
- 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 avaialble 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…arrow_forwardJob Cost Sheet Hallmark Furniture Company refinishes and reupholsters furniture. Hallmark Furniture 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 February 14, 20Y1, an estimate of $2,444 for reupholstering a chair and couch was given to Millard Schmidt. The estimate was based on the following data: Estimated direct materials: 40 meters at $33 per meter $ 1,320 Estimated direct labor: 16 hours at $20 per hour 320 Estimated factory overhead (75% of direct labor cost) 240…arrow_forwardJob 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 prosective 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…arrow_forward
- H12 18 hours at $19 342 Required: Enter amounts as positive numbers. Round answers to the nearest whole dollar. 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. JOB ORDER COST SHEET Customer Lunden Consulting Date May 9 Date wanted May 15 Date completed May 15 Job. No. ESTIMΑΤΕ Direct Materials Direct Labor Summary Amount Amount Amount 400 meters at $32 30 hours at $20 Direct Materials Direct Labor Factory Overhead Total Total Total cost ACTUALarrow_forwardStretch 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 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 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: See attachmentInstructions1. Complete that portion of the job order cost sheet that would be prepared when the estimate is given to the customer. Round…arrow_forwardRemnant 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 $2,716 to carpet the consulting firm’s newly leased office. The estimate was based on the following data: Estimated direct materials: 30 meters at $32 per meter $ 960 Estimated direct labor: 28 hours at $20 per hour 560 Estimated factory overhead (75% of…arrow_forward
- 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 $2,716 to carpet the consulting firm’s newly leased office. The estimate was based on the following data: Estimated direct materials: 30 meters at $32 per meter $ 960 Estimated direct labor: 28 hours at $20 per hour 560 Estimated factory overhead (75% of…arrow_forwardHampton Court Furniture Company refinishes and reupholsters furniture. Hampton 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 June 10, 2006, an estimate of $561.60 for reupholstering a chair and couch was given to Danzel Bishop. The estimate was based on the following data: Estimated direct materials: 9 meters at $18 per meter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $162.00 Estimated direct labor: 14 hours at $10 per hour . . . . . . . . . . . . .…arrow_forwardeBook Job Cost Sheet Hallmark Furniture Company refinishes and reupholsters furniture. Hallmark Furniture 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 February 14, 20Y1, an estimate of $2,444 for reupholstering a chair and couch was given to Millard Schmidt. The estimate was based on the following data: Estimated direct materials: 40 meters at $33 per meter $ 1,320 Estimated direct labor: 16 hours at $20 per hour 320 Estimated factory overhead (75% of direct labor…arrow_forward
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