Vargross Company presented the following data for analysis affecting its gross profit. The company is selling two products, Avon and Bona 2021 2020 Net Sales 228,000 175,000 128,400 99,600 Cost of Sales 105,000 Gross Margin 70,000 Additional data: 2021 2020 Items Avon Bona Avon Bona Units sold 12,000 16,000 10,000 15,000 Unit selling price 1.00ו 6.00 10.00 5.00 Unit costs 6.30 3.30 6.00 3.00 Unit GP 4.70 2.70 4.00 2.00

Vargross Company presented the following data for analysis affecting its gross profit. The company is selling two products, Avon and Bona 2021 2020 Net Sales 228,000 175,000 128,400 99,600 Cost of Sales 105,000 Gross Margin 70,000 Additional data: 2021 2020 Items Avon Bona Avon Bona Units sold 12,000 16,000 10,000 15,000 Unit selling price 1.00ו 6.00 10.00 5.00 Unit costs 6.30 3.30 6.00 3.00 Unit GP 4.70 2.70 4.00 2.00

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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Question

Compute for the following:

1. Sales price variance

2. Cost price variance

3. Quantity variance

Note: Indicate if it is favorable or unfavorable

Vargross Company presented the following data for analysis affecting
its gross profit. The company is selling two products, Avon and Bona
2021
2020
Net Sales
228,000
175,000
Cost of Sales
105,000
70,000
128,400
Gross Margin
99,600
Additional data:
2021
2020
Items
Avon
Bona
Avon
Bona
Units sold
12,000
16,000
10,000
15,000
Unit selling price
1.00ו
6.00
10.00
5.00
Unit costs
Unit GP
6.30
3.30
6.00
3.00
4.70
2.70
4.00
2.00

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