Williamson Company Declared and Distributed a 10% Stock Dividend When

question 93

Multiple Choice

Williamson Company declared and distributed a 10% stock dividend when it had 150,000 shares of $1 par value common stock outstanding.The market price per share of common stock was $10 per share when the dividend was declared.The journal entry to record the stock dividend would include a credit to:

• A)Retained Earnings $150,000.
• B)Paid-in Capital in Excess of Par-Common $135,000.
• C)Common Stock $150,000.
• D)Retained Earnings $15,000.

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Definitions:

Indirect Manufacturing Cost

Costs related to production that are not directly tied to a specific product, such as maintenance, supervision, and utilities.

Incremental Manufacturing Cost

The additional cost incurred for the manufacturing of one more unit of a product.

Relevant Range

The range of activity within which the assumptions about variable and fixed costs remain valid, used in cost accounting and financial planning.

Product Costs

The costs incurred by a business to manufacture a product, including direct materials, direct labor, and manufacturing overhead.