McLean Furniture Company refinishes and reupholsters furniture. McLean 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 $2,964 for reupholstering a chair and couch was given to Marty Byrde. The estimate was based on the following data:

Line Item Description	Amount
Estimated direct materials:
30 meters at $34 per meter	$ 1,020
Estimated direct labor:
24 hours at $30 per hour	720
Estimated factory overhead (75% of direct labor cost)	540
Total estimated costs	$2,280
Markup (30% of production costs)	684
Total estimate	$2,964

On February 17, the chair and couch were picked up from the residence of Marty Byrde, 6818 Gaines Ferry Road, Flowery Branch, Georgia, with a commitment to return them on March 15. The job was completed on March 9.

The related materials requisitions and time recordings by employee are summarized as follows:

Materials Requisition No.	Description	Amount
122	15 meters at $34	$510
129	19 meters at $34	646

Employee	Description	Amount
Codina	12 hours at $30	$360
Kirk	16 hours at $30	480

Instructions:

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

2.   Assign number 02-019 to the job, record the actual costs incurred, and complete the job cost sheet.

Customer	Marty Byrd	Date	February 14, 20Y1
Address	6818 Gaines Ferry Road	Date wanted	March 15, 20Y1
Address	Flowery Branch, Georgia	Date completed	March 9, 20Y1
Item	Reupholster couch and chair	Job. No.	02-019

ESTIMATE

Direct Materials Description	Direct Materials Amount	Direct Labor Description	Direct Labor Amount	Summary Item	Summary Amount
30 meters at $34	$fill in the blank 1 of 18	24 hours at $30	$fill in the blank 2 of 18	Direct materials	$fill in the blank 3 of 18
				Direct labor	fill in the blank 4 of 18
				Factory overhead	fill in the blank 5 of 18
Total	$fill in the blank 6 of 18	Total	$fill in the blank 7 of 18	Total cost	$fill in the blank 8 of 18

ACTUAL

Direct Materials Mat. Req. No.	Direct Materials Description	Direct Materials Amount	Direct Labor Employee	Direct Labor Description	Direct Labor Amount	Summary Item	Summary Amount
122	15 meters at $34	$fill in the blank 9 of 18	Codina	12 hours at $30	$fill in the blank 10 of 18	Direct materials	$fill in the blank 11 of 18
129	19 meters at $34	fill in the blank 12 of 18	Kirk	16 hours at $30	fill in the blank 13 of 18	Direct labor	fill in the blank 14 of 18
						Factory overhead	fill in the blank 15 of 18
Total		$fill in the blank 16 of 18	Total		$fill in the blank 17 of 18	Total cost	$fill in the blank 18 of 18

Answer rating: 100% (QA)

To complete both the estimated and actual parts of the job cost sheet for job number 02019 we will f... View the full answer