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Financial Analysis of Sales and Costs

Exhibit 1 shows actual sales, costs of goods sold, gross margin, manufacturing variances, selling costs, administrative costs, and pre-tax profit for a period. Exhibit 2 breaks out standard variable and fixed costs. It also separates factory overhead from manufacturing variances. Exhibit 3 compares actual results to a proposed plan, showing sales, costs, gross margin, variances, fixed overhead, selling, administrative costs and pre-tax profit.

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155 views3 pages

Financial Analysis of Sales and Costs

Exhibit 1 shows actual sales, costs of goods sold, gross margin, manufacturing variances, selling costs, administrative costs, and pre-tax profit for a period. Exhibit 2 breaks out standard variable and fixed costs. It also separates factory overhead from manufacturing variances. Exhibit 3 compares actual results to a proposed plan, showing sales, costs, gross margin, variances, fixed overhead, selling, administrative costs and pre-tax profit.

Uploaded by

Gmit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Exhibit 1

Sales 1,347,000
COGS 712,000
Std Gross Margin 635,000 220,000

Less Manufacturing Variances


Labour -17,200
Material 15,800
Overhead
Volume 107,480
Spending 5,380 111,460
Overall Gross Margin 523,540

Selling Costs
Sales Expenses 338,056
Sales Taxes 13,900
Freight Allowed 28,780 380,736

Administrative Costs
General & Administrative 108,060
Interest Expenses 57,672 165,732

PBT -22,928 -57,200


Exhibit 2
Sales 1,347,000
COGS (Standard Variable Ciost) 492,000
Std Gross Margin 855,000

Selling Costs
Sales Expenses 338,056
Sales Taxes 13,900
Freight Allowed 28,780 380,736
474,264
Administrative Costs
General & Administrative 108,060
Interest Expenses 57,672 165,732

Factory Overhead 270,280

Manufacturing Variances
Labour -17,200
Material 15,800
Overhead
Spending 5,380 3,980

PBT 34,272
Exhibit 3
Actual Proposed
Sales 1,132,112 1,132,112
COGS 610,416 418,648
Std Gross Margin 521,696 713,464

Less Manufacturing Variances


Labour -21,704 -21,704
Material 20,324 20,324
Overhead
Volume -1,788 --
Spending 8,692 8,692
Fixed factory Overheads -- 263,448

Profit before administrative & Selling exp 516,172 442,704


Selling Expenses 341,928 341,928
Administrative Expenses 160,208 160,208
Freight Allowed

PBT 14,036 -59,432

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