/

R 28-7L Kon;-,, *J*"0 "l A.*n,",*o*, MAS-12

FINANCIAL STATEM ENT ANALYSIS
EXERCISES: GP VARIANCE ANALYSIS
1. GROSS PROFTT ANALYSTS WrTH A SINGLE PRODUCT (FULL INFORMATION)
, Spain Company prepared the following budgetary inforrnation for January 2Ol7:
Sales (12,0O0 units) P 432,OAO
Cost of Goods Sold 288.000
Gross Proflt P:!4@
In January, actual operations resulted in the production and sale of 13r0O0 units which were sold for a
selling price of P 34 per unit. The unit cost of goods sold increased by P 3.
REQUIRED:
1. Overall GP variance
2. Sales price variance
3. Sales volume variance
4. Cost price variance
5. . Cost volume variance
(Adapted: AICPA)
2. GROss PROFITTANALYSIS WITH A SINGLE PRODUCT (INCOMPLETE INFORMATION)
Rafa Company has requested you to determine the cause of the difference between its 2Ot6 and 2O17
gross profit based on the following data:
2016 2017
Sales P200,000 P252,000
Cost of Goods Sold 120,000 180,-000
Gross Profit e
,&oo Pd2-409
No additional data was made available except that unit sales increased by 2$o/o in 2AL7.
REQUIRED:
1. Overall GP variance
2. Price factor
3. Cost factor
4. Volume factor
(Adapted: AICPA)
3. GROSS PROFTTANALYSIS EXERCISES
14)_,9"";*9o.qlgely-l'9gl!9.
Sales P160,000 P162,500
Cost of goods sold (P 5 per unit) 100,000 102,500
Gross profit P=.s@00 P_oaJoo
If actual sales were 500 units higher than the budgeted sales, then which is a FALSE statement?
a. The sales price variance is P 1,500 unfavorable.
b. The sales volume variance is P 4,O00 favorable.
c. The cost price variance is zero (O).
d. The cost volume variance is P 2,5O0 favorable.
Items 3B to 3F are based on the following information
The management of R-18 Company asked you to submit an analysis of the increase in the gross
profit in 2017 based on the past two-year comparative income statements, which are shown below:
2017 2016
Net Sales P L,237,5AA P 1,000,000
cost of sales 950,ooo 900.000
Gross Profit P_287*s0O P_a00J@
The selling price increased by 12.5o/o beginning January 201,7.
38) What is the increase in gross profit due to increase in volume? (VOLUME FACTOR)
a. P 20,000 c. p 50,000
b. P 35,000 d. P 100,000
3C) How much is the gross profit decline due to increase in cost? (COST FACTOR)
a. P 70,000 c. P B8,0OO
b. P B0,OO0 d. P 97,500
3D) The increase in sales prices caused an increase in gross profit by (PRiCE FACTOR)
a. P 100,000 c. P 137,500
b. P 110,000 d. P 237,500
3E) What is the percentage change in volume?
a. 9o/o c. Lto/o
b. 7Oo/o d. 72-75o/o
3F) What is the percentage change in cost?
a. 10.8olo c. 8.6750/o
b.' laa/a d. 7.95o/o

PageT of8 pages