Wendell Company Provided the Following Pertaining to Its Recent Year

question 47

Multiple Choice

Wendell Company provided the following pertaining to its recent year of operation: • Common stock with a $10,000 par value was sold for $50,000 cash.
• Cash dividends totaling $20,000 were declared, of which $15,000 were paid.
• Net income was $70,000.
• A 5% stock dividend resulted in a common stock distribution, which had a $5,000 par value and a $23,000 market value.
• Treasury stock costing $9,000 was sold for $7,000.
How much did Wendell's total stockholders' equity increase during the recent year of operation?

• A) $107,000.
• B) $84,000.
• C)$98,000.
• D)$112,000.

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Definitions:

First-In, First-Out

An inventory valuation method where goods first added to inventory are the first ones to be sold.

Equivalent Units

A conceptual unit used in cost accounting to represent the amount of work done on partially completed goods, allowing for the calculation of unit costs.

Finishing Department

A section in a manufacturing process where products are completed, processed further, or refined after initial production stages.

Equivalent Units

A term used in cost accounting to represent a portion of finished goods calculated by combining completed units and partially completed units.