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npany imonly ater company's report of its operations: Dawn Mining Company Report of Operations For the years ended December 31, 2008 and 2007 2008 2007 Net sales 891,000 840,000 Cost of sales 688,500 945,000 Gross profit (loss) 202,500 (105,000)

npany imonly ater company's report of its operations: Dawn Mining Company Report of Operations For the years ended December 31, 2008 and 2007 2008 2007 Net sales 891,000 840,000 Cost of sales 688,500 945,000 Gross profit (loss) 202,500 (105,000)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Using 6-way variance analysis, determine the following variances:

4. Cost volume variance

5. Cost factor

6. Cost-Quantity factor

Format: 111,111 U or 111,111 F

The Dawn Mining Company mines selum, a commonly used material. The following is the company's report of its operations: Dawn Mining Company Report of Operations For the years ended December 31, 2008 and 2007 2008 2007 Net sales Cost of sales 891,000 840,000 945,000 688,500 Gross profit (loss) 202,500 (105,000) The following pertains to the company's operations: 1. The sales price of selum was increased from P8 per ton to P11 per ton on Jan. 1 2008. 2. New mining machinery was placed in operation on January 1, 2008 that reduced the cost of mining from P9 per ton to P8.50 per ton. 3. There was no change in ending inventories that were valued on the LIFO basis.
Transcribed Image Text:The Dawn Mining Company mines selum, a commonly used material. The following is the company's report of its operations: Dawn Mining Company Report of Operations For the years ended December 31, 2008 and 2007 2008 2007 Net sales Cost of sales 891,000 840,000 945,000 688,500 Gross profit (loss) 202,500 (105,000) The following pertains to the company's operations: 1. The sales price of selum was increased from P8 per ton to P11 per ton on Jan. 1 2008. 2. New mining machinery was placed in operation on January 1, 2008 that reduced the cost of mining from P9 per ton to P8.50 per ton. 3. There was no change in ending inventories that were valued on the LIFO basis.
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