Problem 6. Highland Coffee Company is concerned with its gross profit negating the increase ofits sales. It presents the following data for two species of coffee, Arabica and Robusta, for 2020and 2019:20202019KilosPrice/Kg.AmountKilosPrice/Kg.AmountNet salesArabica12,000P390P4,680,00010,500P400P4,200,0003,600,0008,280,000Robusta10,00036011,0003303.630,000Totals7,830,000Cost of goods soldArabica3203,840,0003,000,0003503,675,000Robusta3002402,640,000Totals6,840,0006,315,000P1,440.000Required: Calculate and analyze the gross profit variance.Gross profitP1,515.000

Variance analysis is an analysis used to recognize the difference between actual behavior and…

Problem 6. Highland Coffee Company is concerned with its gross profit negating the increase o its sales. It presents the following data for two species of coffee, Arabica and Robusta, for 2020 and 2019: 2020 2019 Kilos Price/Kg. Amount Kilos Price/Kg. Amount Net sales Arabica 12,000 P390 P4,680,000 10,500 P400 P4,200,000 Robusta 10,000 360 3,600,000 11,000 330 3,630,000 Totals 8,280,000 7,830,000 Cost of goods sold Arabica 320 3,840,000 350 3,675,000 Robusta 300 3,000,000 240 2,640,000 Totals 6,840,000 6,315,000 P1,440.000 Required: Calculate and analyze the gross profit variance. Gross profit P1,515,000

Problem 6. Highland Coffee Company is concerned with its gross profit negating the increase o its sales. It presents the following data for two species of coffee, Arabica and Robusta, for 2020 and 2019: 2020 2019 Kilos Price/Kg. Amount Kilos Price/Kg. Amount Net sales Arabica 12,000 P390 P4,680,000 10,500 P400 P4,200,000 Robusta 10,000 360 3,600,000 11,000 330 3,630,000 Totals 8,280,000 7,830,000 Cost of goods sold Arabica 320 3,840,000 350 3,675,000 Robusta 300 3,000,000 240 2,640,000 Totals 6,840,000 6,315,000 P1,440.000 Required: Calculate and analyze the gross profit variance. Gross profit P1,515,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ma3.
N.B:SHOW ALL STEPS USED WITH CLEAR DETAILS AND EXPLANATIONS .