On January 1, 2013, Shamu Corporation Had 100,000 Shares of Common

question 17

Essay

On January 1, 2013, Shamu Corporation had 100,000 shares of common stock outstanding. The following transactions occurred during 2013: The following transactions occurred during 2014: Required:
Calculate Shamu's basic earnings per share (rounded to 2 decimal places) for both years for presentation in comparative financial statements that will be prepared at the end of 2014.

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Definitions:

Direct Materials

Direct materials refer to raw materials that can be directly attributed to the production of a specific product, considered a variable cost in manufacturing.

Cost of Goods Manufactured

The total cost incurred to manufacture products, including costs related to materials, labor, and manufacturing overhead, within a specific period.

Ending Balance

The amount of money in an account at the end of a given period, after all transactions have been accounted for.

Raw Materials

Essential substances and components utilized in production processes for the creation of completed items.