On January 1, 2022, a company issued 10,000 shares of common stock for $20 per share. On July 1, 2022, the company issued an additional 5,000 shares of common stock for $25 per share. On December 31, 2022, the company had 2,000 shares of treasury stock, which were acquired for $23 per share. Calculate the weighted average cost per share of the company's common stock as of December 31, 2022.

Answer: ($20 x 10,000) + ($25 x 5,000) - ($23 x 2,000) = $220,000 Weighted average cost per share = $220,000 ÷ (10,000 + 5,000 - 2,000) = $16.92

To calculate the weighted average cost per share of the company's common stock as of December 31, 2022, the following workings were done:

1. Total cost of shares issued and outstanding:

($20 x 10,000) + ($25 x 5,000) = $200,000 + $125,000 = $325,000

1. Cost of treasury shares:

$23 x 2,000 = $46,000

1. Number of shares issued and outstanding:

10,000 + 5,000 - 2,000 = 13,000

1. Weighted average cost per share:

($325,000 - $46,000) ÷ 13,000 = $279,000 ÷ 13,000 = $16.92