Stanton Co Required:
Compute the Sales Price and the Sales Volume Variances

question 148

Essay

Stanton Co.produces and sells two lines of t-shirts, Deluxe and Mega.Stanton provides the following data:
$\begin{array}{lrr}& \underline { \text { Budget } } & \underline { \text {Actual } } \\\text { Unit sales price-Deluxe } & \$ 15 & \$ 16 \\\text { Unit sales price-Mega } & \$ 20 & \$ 19 \\\text { Unit sales-Deluxe } & 2,400 & 2,500 \\\text { Unit sales-Mega } & 2,000 & 1,900\end{array}$ Required:
Compute the sales price and the sales volume variances for each product.

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Definitions:

Inventory

The raw materials, work-in-process goods, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

LIFO Conformity Rule

A requirement for companies using the Last In, First Out (LIFO) method for tax reporting to also use it for financial reporting to shareholders.

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a certain period, indicating the efficiency of inventory management.

Perpetual Inventory System

An inventory management approach where updates to inventory records are made in real-time following each transaction or event.