Question

Preparation of Estimated Cost Sheet

Answer 1

1. Notate material costs on a ledger that shows every expenditure on materials or supplies used for a particular job. Transfer all material costs listed on the ledger to a cost sheet when the project is finished.
2. Keep a log of all labor hours used to perform a job. Make a note of pay rates and hours for each employee who works on the project. Transfer project labor hours to the job cost sheet after the work is done.
3. Calculate the overhead cost for a job after all work is completed. Find the overhead cost figure by multiplying the overhead for a given number of employee hours, or by multiplying the number of days spent on the project by the daily overhead cost for a manufacturing facility.
4. List the individual costs for labor and time spent on the project. Note total costs for all separate materials. List the overhead as indirect labor and material costs. Show the total costs for labor, materials and overhead in a separate column. Add these three totals for an overall bottom line total cost. Prepare cost sheets showing these expenditures for all department heads and clients.