The president of Normolle Mfg. Co. which manufactures only one product, requests an analysis of the causes of the change in gross profit. An investigation reveals the following: Sales Cost of Sales Gross Profit 2020 Amount P1,224,000 700,800 P523,200 Per Unit 2019 Amount P1,000,000 P10.20 5.84 600,000 P4.36 P400,000 Per Unit REQUIRED: 1. A detailed analysis of the causes for the change in gross profit graphically. P10.00 6.00 P4.00

The president of Normolle Mfg. Co. which manufactures only one product, requests an analysis of the causes of the change in gross profit. An investigation reveals the following: Sales Cost of Sales Gross Profit 2020 Amount P1,224,000 700,800 P523,200 Per Unit 2019 Amount P1,000,000 P10.20 5.84 600,000 P4.36 P400,000 Per Unit REQUIRED: 1. A detailed analysis of the causes for the change in gross profit graphically. P10.00 6.00 P4.00

Name: Exercise 5-12The president of Normolle Mfg. Co. which manufactures on
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Description: Exercise 5-12The president of Normolle Mfg. Co. which manufactures only one product,requests an analysis of the causes of the change in gross profit. An investigationreveals the following:SalesCost of SalesGross Profit2020AmountP1,224,000700,800P523

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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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

Exercise 5-12
The president of Normolle Mfg. Co. which manufactures only one product,
requests an analysis of the causes of the change in gross profit. An investigation
reveals the following:
Sales
Cost of Sales
Gross Profit
2020
Amount
P1,224,000
700,800
P523,200
Per Unit
P10.20
5.84
P4.36
2019
Amount
P1,000,000
600,000
P400,000
Per Unit
REQUIRED:
1. A detailed analysis of the causes for the change in gross profit graphically.
P10.00
6.00
P4.00

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