Alma Corp Issues 1,000 Shares of $10 Par Value Common Stock

question 31

Multiple Choice

Alma Corp. issues 1,000 shares of $10 par value common stock at $16 per share. When the transaction is recorded, a credit or credits are made to:

• A) Common Stock $16,000.
• B) Common Stock $10,000 and Additional Paid-in Capital $6,000.
• C) Common Stock $6,000 and Additional Paid-in Capital $10,000.
• D) Common Stock $10,000 and Retained Earnings $6,000.

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Definitions:

Standard Cost Card

A document that lists the standard costs associated with producing a product, including materials, labor, and overhead rates.

Direct Labor Hour

Direct labor hour refers to the time spent by workers directly involved in the production of goods or services.

Overhead Applied

A portion of overhead costs assigned to a particular cost object based on a predetermined rate.

Direct Labor Efficiency Variance

The difference between the budgeted amount of direct labor required to produce an output and the actual direct labor used.