Juneau Container makes steel storage canisters for various chemical products. The company uses a job order costing system and obtains jobs based on competitive bidding. For each project, a budget is developed.

One of the firm’s products is a 55-gallon drum. In the past year, the company made this drum on four separate occasions for four different customers. Financial details for the four orders follow:

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Assume that you are the company’s controller. Write a memo to management describing any problems that you perceive in the data presented and the steps that should be taken to eliminate recurrence of these problems.

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Job No. Actual Cost Bid Price Budgeted Cost Date Quantity 60,000 29,000 61,000 35,000 Jan, 17 Mar. 13 2118 $120,000 110,000 125,000 150,000 $190,000 155,000 180,000 $145,000 2789 121,000 143,000 Oct. 20 4300 168,000 Dec. 3 4990 175,000