If a Stock Dividend Occurs After Year-End, but Before Issuing

question 77

True/False

If a stock dividend occurs after year-end, but before issuing the financial statements, a company must restate the weighted-average number of shares outstanding for the year.

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Definitions:

Blending Department

A division within a manufacturing operation where raw materials are combined to produce a homogeneous product.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale.

Conversion Cost

Direct labor cost plus manufacturing overhead cost.

Fitting Department

A specific section within a manufacturing facility where products are assembled, fitted, or finished according to specifications.