Lorens Manufacturing Declared a 10% Stock Dividend When It Had

question 12

Multiple Choice

Lorens Manufacturing declared a 10% stock dividend when it had 200,000 shares of $5 par value common stock outstanding. The market price per common share was $12 per share when the dividend was declared. The entry to record this dividend declaration includes a credit to:

• A) Stock Dividends of $240,000.
• B) Paid-in Capital in Excess of Par for $140,000.
• C) Common Stock for $240,000.
• D) Stock Dividends for $100,000.

Understand the process and importance of establishing or enhancing communication and dispute resolution skills.

Differentiate between the roles of mediators, arbitrators, and process consultants.

Understand the general process of arbitration and its implications for dispute resolution.

Understand the concept and purpose of negotiated Alternative Dispute Resolution (ADR) systems.

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Definitions:

Grinding Minutes

A measure of the time spent on grinding processes in manufacturing, often used to allocate costs or measure productivity.

Monthly Demand

The total quantity of a product that consumers are willing and able to purchase within a month.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies with production volume.

Opportunity Cost

The value of the best alternative foregone as a result of making a decision, representing the benefit that could have been gained from the next best choice.