You Are Given the Following Information About DWWR Ltd

question 149

Essay

You are given the following information about DWWR Ltd.: 130,000 common shares outstanding on January 1, 2012
$100,000 8% preferred shares, cumulative, nonconvertible dividends paid at the end of the year
12,000 shares sold on March 1, 2012
11,000 shares sold on September 1, 2012
4 for 1 Stock split recorded on October 1, 2012 Net Income for the year $2,340,000
Required:
Calculate the basic EPS.

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Definitions:

Direct Materials Quantity Variance

Direct materials quantity variance is a measure of the difference between the estimated amount of materials supposed to be used in production and the actual amount used, reflecting efficiency in material usage.

Material Costing

The process of determining the costs associated with the raw materials used in the production of goods or services.

Pounds of Material

A measure of the quantity of material, often used in manufacturing, expressed in pounds.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain amount of goods, multiplied by the standard labor rate.