Craig Rusch Corporation Reports the Following Information Rusch Should Report Earnings Per Share of
A)$3

question 82

Multiple Choice

Craig Rusch Corporation reports the following information: $$\begin{array} { l r } \text { Net income } & \$ 500,000 \\\text { Dividends on common stock } & 140,000 \\\text { Dividends on preferred stock } & 60,000 \\\text { Weighted average common shares outstanding } & 100,000\end{array}$$ Rusch should report earnings per share of

• A)$3.00.
• B)$3.60
• C)$4.40.
• D)$5.00.

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Definitions:

Manufacturing Overheads

All indirect costs associated with the production process, including utilities, maintenance, and factory management salaries.

Period Costs

Expenses that are not directly tied to production activities, often including selling, general, and administrative expenses.

Total Manufacturing Costs

The sum of all costs directly involved in producing goods, including materials, labor, and overhead.

Work in Process

Inventory in various stages of production but not yet completed, representing the costs of materials, labor, and overhead invested in unfinished goods.