Question

Meyers, Inc. presented the following data:

Answer 1

Answer:

d. 1,990.

Explanation:

The computation of the denominator that should be used for determining the basic EPS is as follows:

Outstanding shares   Oustanding months  Equivalent units

2,000                              (9 ÷ 12)                   1,500

(1,000 × 2)

1,800                                (1 ÷ 12)                    150

(2,000 - 200)  

$2,040                             (2 ÷ 12)                    340

(1,800 + 240)      

Total shares                                                  1,990