Refer to the Information Above

question 47

Multiple Choice

Refer to the information above. Assuming there are no further transactions involving treasury stock in 2011, the financial statements of Jetter Corporation for 2011 will show:

• A) Treasury Stock of $81,000 among the assets in the balance sheet.
• B) Gain on Sale of Treasury Stock of $3,000 in the income statement for 2011.
• C) Treasury Stock of $120,000 as a deduction in the stockholders' equity section of the December 31, 2011, balance sheet.
• D) Additional Paid-In Capital: Treasury Stock Transactions of $3,000 in the December 31, 2011 balance sheet.

---

Definitions:

Factory Burden

Another term for manufacturing overhead or factory overhead.

Materials Inventory

The cost of materials that have not yet entered into the manufacturing process.

Manufacturing Process

The sequence of operations that transforms raw materials into finished goods, involving tasks such as machining, assembly, and quality control.

Product Costs

The costs that are directly associated with the creation of products including direct labor, direct materials, and manufacturing overhead.