Sue Shells,Inc

question 218

Multiple Choice

Sue Shells,Inc.issues $400,000 in new stock.It later uses the cash received to purchase land.What accounts are affected by these two transactions?

• A)Common Stock,Cash,and Land.
• B)Common Stock,Cash,and Investments.
• C)Cash,Common Stock,and Investments,and Land.
• D)Common Stock,and Land.

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Definitions:

Direct Materials

Raw materials that can be directly identified and attributed to the production process of a specific finished product.

Bottling Department

A segment in a manufacturing or production facility specifically designed for the packaging of liquid products into bottles.

Equivalent Units

A concept in cost accounting used to measure the amount of work done on partially completed goods, expressed in terms of fully completed units.

Conversion Costs

The sum of labor and overhead costs incurred to convert raw materials into finished goods.