Question
Using the budget information and sales figures provided about products.Choose one product or the overall total and write a brief description to explain the variance.
Using the budget information and sales figures provided about products.Choose one product or the overall total and write a brief description to explain the variance. 100150 words
Budget
| Product | Cost price | Sale price | Total budget sales last month | Total costs on sales | Gross profit budget last month | Profit % per item on sale price | ||
|---|---|---|---|---|---|---|---|---|
| # | $ | per item | on sales | |||||
| A | $7.50 | $12.00 | 500 | $6,000 | $3,750 | $4.50 | $2,250 | 38% |
| B | $9.25 | $17.00 | 400 | $6,800 | $3,700 | $7.75 | $3,100 | 46% |
| C | $10.00 | $30.00 | 300 | $9,000 | $3,000 | $20.00 | $6,000 | 67% |
| Total | 1,200 | $21,800 | $10,450 | $11,350 | ||||
Sales
| Product | Cost price | Sale price | Total sales last month | Total costs on sales | Gross profit last month | Profit % per item on sale price | ||
|---|---|---|---|---|---|---|---|---|
| # | $ | per item | on sales | |||||
| A | $7.50 | $12.00 | 650 | $7,800 | $4,875 | $4.50 | $2,925 | 38% |
| B | $9.25 | $17.00 | 500 | $8,500 | $4,625 | $7.75 | $3,875 | 46% |
| C | $10.00 | $30.00 | 200 | $6,000 | $2,000 | $20.00 | $4,000 | 67% |
| Total | 1,350 | $22,300 | $11,500 | $10,800 | ||||
| Product | Gross profit budget ($) | Gross profit actual ($) | Variance ($) |
| A | $2,250.00 | $2,925.00 | $675.00 |
| B
| $3,100.00 | $3,875.00 | $775.00 |
| C | $6,600.00 | $4,000.00 | ($2,000.00) |
| Total | $11,350.00 | $10,800.00 | ($550.00) |
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Auditing Cases An Interactive Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
6th edition
133852105, 978-0133852103
