Oxford Co Produces and Sells Two Lines of T-Shirts, Classic and and Mod

question 24

Essay

Oxford Co. produces and sells two lines of t-shirts, Classic and Mod. Oxford provides the following data. Compute the sales price and the sales volume variances for each product.
$$\begin{array} { l | l | l } & \text { Budget } & \text { Actual } \\\hline \text { Unit sales price } - \text { Classic } \ldots & \$ 15 & \$ 16 \\\hline \text { Unit sales pric e-Mod } \ldots \ldots & \$ 20 & \$ 19 \\\hline \text { Unit sales-Clas sic } \ldots \ldots \ldots \ldots & 2,400 & 2,500 \\\hline \text { Unit sal es-Mod } \ldots \ldots \ldots \ldots \ldots & 2,000 & 1,900\end{array}$$

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Definitions:

Office Supplies

Items like pens, paper, calculators, and computers that are used on a daily basis within an office setting.

Permanent/Temporary

Refers to accounts in accounting: permanent accounts are balance sheet accounts that carry over into the next accounting period, while temporary accounts are income statement accounts closed at the end of the accounting period.

Financial Statement

A written record that quantitatively describes the financial health of a company, including income statement, balance sheet, and cash flow statement among others.

Statement Of Cost Of Goods Manufactured

A financial report detailing the total production costs incurred by a company to produce goods over a specific period.