Carlin Furniture Company refinishes and reupholsters furniture. Carlin uses a job order cost system. When a prospective
Question:
Carlin Furniture Company refinishes and reupholsters furniture. Carlin 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 July 6, 20Y1, an estimate of $2,834 for reupholstering a sofa and loveseat was given to Justin Flannigan. The estimate was based on the following data:
| Estimated direct materials: | |
| 40 meters at $32 per meter | $ 1,280 |
| Estimated direct labor: | |
| 24 hours at $20 per hour | 480 |
| Estimated factory overhead (75% of direct labor cost) | 360 |
| Total estimated costs | $2,120 |
| Markup (30% of production costs) | 636 |
| Total estimate | $2,756 |
On July 10, the sofa and loveseat were picked up from the residence of Justin Flannigan, 310 Suzuki Drive, Lubbock, TX, with a commitment to return it on September 7. The job was completed on September 3.
The related materials requisitions and time tickets are summarized as follows:
| Materials Requisition No. | Description | Amount | |
| 310 | 20 meters at $32 | $640 | |
| 312 | 24 meters at $32 | 768 | |
| Time Ticket No. | Description | Amount | |
| H50 | 12 hours at $20 | $240 | |
| H55 | 16 hours at $20 | 320 | |
Instructions:
1. Complete the portion of the job order cost sheet that would be prepared when the estimate is given to the customer. Assign number 12-211 to the job, record the costs incurred, and complete the job order cost sheet.
2. Assign number 12-211 to the job, record the actual costs incurred, and complete the job order cost sheet.
| JOB ORDER COST SHEET | |||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||
| Direct Materials | Direct Labor | Summary | |||||||||||||||||||||||||||||||||||||||||||||
| Amount | Amount | Amount | |||||||||||||||||||||||||||||||||||||||||||||
| 40 Meters at $32 | 24 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 | ||||||||||||||||||||||||||||||||||||||||
| 310 | 20 Meters at $32 | H50 | 12 Hours at $20 | Direct Materials | |||||||||||||||||||||||||||||||||||||||||||
| Direct Labor | |||||||||||||||||||||||||||||||||||||||||||||||
| 312 | 24 Meters at $32 | H55 | 16 Hours at $20 | Factory Overhead | |||||||||||||||||||||||||||||||||||||||||||
| Total | Total | Total Cost | |||||||||||||||||||||||||||||||||||||||||||||
Expert Answer:
1 Estimate Job 12211 Direct Materials Direct Labor Summary 40 meters 32 1280 24 hours 20 480 ... View the full answer
