On January 1, 2022, Coastal Corp

question 110

Multiple Choice

On January 1, 2022, Coastal Corp.purchased 30% of the common shares of Mansbridge Corp.for $600,000.During 2022, Mansbridge Corp.reported net income of $75,000 and paid total cash dividends of $15,000.The balance in the Investment in Associates (Mansbridge) account on Coastal's books at December 31, 2022 is

• A)$675,000.
• B)$622,500.
• C)$618,000.
• D)$600,000.

---

Definitions:

Process Costing System

A costing method used in industries where production is continuous, assigning costs to units of product based on the process they go through.

Direct Materials

The raw materials that are used directly in the manufacturing of a product and can be easily traced to it.

Journal Entry

A record in the accounting journal that represents a business transaction, including information such as the date, accounts affected, and amounts debited and credited.

Process Costing System

An accounting system used to evaluate the cost associated with a production process that continuously produces homogeneous products.