Problem 6. Highland Coffee Company is concerned with its gross profit negating the increase of 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 8,280,000 11,000 330 3.630,000 7,830,000 Totals 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 of 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 8,280,000 11,000 330 3.630,000 7,830,000 Totals 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

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Description: Calculate and analyze the gross profit variance 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 2019:2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Variance Analysis

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Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Calculate and analyze the gross profit variance

Problem 6. Highland Coffee Company is concerned with its gross profit negating the increase of
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
10,000
3,600,000
8,280,000
Robusta
360
11,000
330
3.630.000
Totals
7,830,000
Cost of goods sold
Arabica
320
3,840,000
350
3,675,000
Robusta
3,000,000
6,840,000
300
240
2,640,000
Totals
6,315,000
P1,440.000
Required: Calculate and analyze the gross profit variance.
Gross profit
P1,515.000

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