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 $9,450 to carpet the consulting firm’s newly leased office. The estimate was based on the following data:

Estimated direct materials:
200 meters at $35 per meter	$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 (25% 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 meters at $35	$4,900
114	68 meters at $35	2,380

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

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.

JOB ORDER COST SHEET
Customer Jackson Consulting Date October 1 Date wanted October 10 Date completed October 1 Job. No. ESTIMATE
Direct Materials			Direct Labor			Summary
		Amount			Amount		Amount
200 Meters at $35		$	16 Hours at $20		$	Direct Materials	$
						Direct Labor
						Factory Overhead
Total		$	Total		$	Total cost	$
ACTUAL
Direct Materials			Direct Labor			Summary
Mat. Req. No.	Description	Amount	Time Ticket No.	Description	Amount	Item	Amount
112	140 Meters at $35	$	H10	10 Hours at $20	$	Direct Materials	$
						Direct Labor
114	68 Meters at $35		H11	10 Hours at $20		Factory Overhead
Total		$	Total		$	Total Cost	$

Answer 1

JOB ORDER COST SHEET
Customer	Jackson Consulting		Date	Oct-01
			Date wanted	Oct-10
			Date completed	Oct-01
			Job. No.
ESTIMATE
Direct Material			Direct Labour			Summary
		Amount			Amount		Amount
200 Meters at 35		7,000.00	16 Hours at 20		320.00	Direct Materials	7,000.00
						Direct Labor	320.00
						Factory Overheads	240.00
Total		7,000.00	Total		320.00	Total Cost	7,560.00
ACTUAL
Direct Materials			Direct Labor			Summary
Mat. Req. NO.	Description	Amount	Time Ticket NO.	Description	Amount	Item	Amount
112.00	140 Meters at35	4,900.00	H10	10 Hours at 20	200.00	Direct Materials	7,280.00
114.00	68 Meters at 35	2,380.00	H11	10 Hours at 20	200.00	Direct Labor	400.00
						Factory Overheads	300.00
Total		7,280.00	Total		400.00	Total Cost	7,980.00