Constance Corporation Reported a $750,000 Balance in Its Common Stock

question 29

Essay

Constance Corporation reported a $750,000 balance in its common stock account at the end of 2014. The company held 50,000 shares of treasury stock and had 700,000 shares outstanding.
Required:
Calculate the par value per share of the company's common stock.

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Definitions:

Work in Process

Inventory account containing goods that are in the manufacturing process but are not yet complete.

Standard Costs

Predetermined or budgeted costs used for cost control and decision-making, serving as a benchmark for measuring performance.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost, reflecting changes in material prices.

Raw Materials Purchases

The total cost incurred from buying raw materials that are to be used in the production process.