write a memo to management describing any problems that you perceive in the data pre 641814
(Cost control; writing) 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:
Date |
Job No. |
Quantity |
Bid Price |
Budgeted Cost |
Actual Cost |
Jan. 17 |
2118 |
60,000 |
$190,000 |
$120,000 |
$145,000 |
Mar. 13 |
2789 |
29,000 |
155,000 |
110,000 |
121,000 |
Oct. 20 |
4300 |
61,000 |
180,000 |
125,000 |
143,000 |
Dec. 3 |
4990 |
35,000 |
175,000 |
150,000 |
168,000 |
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.