Professional Documents
Culture Documents
ANALYSIS
By:
MHARZAN
MARIA
ANDRES &
LOURDES COMTIAG-AGMATA
2.
3.
Uses of
2.
19A
(net)$120,000
$100,000
---------$20,000
=======
19B
$140,000
$110,000
--------$30,000
=======
Changes
+$20,000
+$10,000
---------+$10,000
=======
20,000 Units$2.60
$52,000 $2.175
$43,500
---------$120,000
---------$100,000
=======
=======
19B Sales
Unit
Product Quantity
Price
X
Y
Z
Total
$4.00 $40,000
3.50 $14,000
2.80 $56,000
------110,000
=====
$140,000
$50,000
$16,000
$52,000
-------
$118,000
-------
$22,000
=======
$118,000
$120,000
------
$2,000
======
2.
3.
4.
5.
$110,000
$40,000
$14,000
$43,500
---------
$97,500
--------$12,500
========
$97,500
$100,000
--------$2,500
========
$22,000
$12,500
------10,000
=====
$500
-------$22,500
$118,000
$ 97,500
------------$20,500
$19,427
--------$ 1,073
======
$19,427
20,000
--------$573
======
Recapitulations of Variances:
The variances identified in the preceding calculations are summarized below:
Gains
Gain due to increased sales price
$22,000
Loss due to increased cost
Gain due to shift in sales mix
$1073
sold Loss due to decrease in units
--------$23073
Total
$13073
Less
--------profit Net increase in gross$10,000
=======
Losses
$12,500
$573
--------$13073
Statement 1:
Income Statement (Budgeted)
ProductUnits
A
B
C
6,000
3,500
1,000
------10,500
=====
*Weighted average
Sales
Unit price
$15.00
$12.00
$10.00
------$13.52*
=====
Amount
$90,000
$42,000
$10,000
-------$142,000
=====
Cost
Unit cost
$12.00
$10.00
$8.75
------$11.02*
=====
Amount
$72,000
$35,000
$8,750
------$115,750
=====
Gross Profit
Per unit Amount
$3.00 $18,000
$2.00 $7,000
$1.25 $1,250
------- -------$2.50* $26,250
===== =====
ProductUnits
A
B
C
5,112
4,208
1,105
------10,425
=====
Sales
Unit price
$15.00
$12.00
$10.00
------$13.26*
=====
*Weighted average
Amount
$76,680
$50,496
$11,050
-------$138,226
=====
Cost
Unit cost
$12.00
$10.00
$8.75
------$10.85*
=====
Amount
$61,344
$42,080
$9,669
------$113,093
=====
(actual)
Gross Profit
Per unit Amount
$3.00 $15,338
$2.00 $8,416
$1.25 $1,381
------- -------$2.41* $25,133
===== =====
Statement 3:
Income Statement (Actual units at budgeted prices and costs)
ProductUnits
A
B
C
5,112
4,208
1,105
------10,425
=====
Sales
Unit price
$15.00
$12.00
$10.00
------$13.26*
=====
*Weighted average
Cost
Amount Unit cost
$76,680 $12.00
$50,496 $10.00
$11,050 $8.75
-------------$138,226 $10.85*
===== =====
Gross Profit
Amount Per unit Amount
$61,344 $3.00
$15,338
$42,080 $2.00
$8,416
$9,669 $1.25
$1,381
-------------------$113,093 $2.41*
$25,133
===== ===== =====
$142,233
$138,226
----------$4,007
=======
$138,226
142,000
-----------$3,774
========
$122,125
$113,093
----------$9,032
=======
$113,093
115,570
-----------$2,657
========
$3,774
$2,657
-------$1,117
=====
$138,266.00
113,093.00
-------------$25,133.00
Difference
Budgeted gross profit of actual units sold
10,425 actual units $2.50 budgeted gross profit per unit
$26062.50
--------------$929.50
=======
$26062.50
$142,000
$115,750
-------------
26,250.00
--------------$187.50
========
Check:
Unfavorable sales mix variance
Unfavorable final sales volume variance
$929.50
187.50
----------1,117.00
======
Recapitulation of Variances:
Gain due to increased sales prices
Loss due to increased cost
Loss due to shift in sales mix
Loss due to decrease in units sold
Total
Less
Net decrease in gross profit
Gains
$4,007
Losses
$9,032.00
929.50
187.50
--------------$10,149.00
4,007.00
--------------$6,142.00
=======