Constance Corporation Reported a $750,000 Balance in Its Common Stock

question 37

Essay

Constance Corporation reported a $750,000 balance in its common stock account at the end of 2016. The company held 50,000 shares of treasury stock and had 700,000 shares of common stock outstanding.
Required:
Calculate the par value per share of the company's common stock.

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Definitions:

Standard Price

A predetermined cost that serves as a benchmark for evaluating actual cost performance in purchasing or production.

Direct Materials

Raw materials that can be directly traced to the production of specific goods or services.

Manufacturing Cost Variance

The difference between the actual costs of production and the standard or expected costs, indicating efficiency or inefficiency in the manufacturing process.

Direct Materials Cost Variance

The difference between the actual cost of direct materials used in production and the standard cost expected to be used.