Olson Corporation Constructs New Homes

question 4

Multiple Choice

Olson Corporation constructs new homes. Assume that Olson uses a job-order costing system. During May, the following transactions occurred:
1. Olson purchased $4,500 of lumber on account.
2. Olson used $3,750 of lumber in production and incurred 50 hours of direct labour hours at $15 per hour.
3. Depreciation of $1,500 on equipment used to build new houses was recorded.
4. A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash.

-Refer to the figure.What debit or credit would be used to record the requisition of lumber for Olson include?

• A)a credit to work in process of $4,500
• B)a debit to materials inventory of $4,500
• C)a credit to finished goods of $3,750
• D)a debit to work in process of $3,750

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Economies of Scale

Advantages in terms of costs that companies realize by enlarging their scale of operations, with the unit cost of production generally falling as the scale increases.

Total Product

The overall quantity of output that a firm produces, usually within a given period of time, based on the input of resources.

Marginal Product

The additional output that is produced by employing one more unit of a particular input, such as labor or capital.

Average Product

The output per unit of input, calculated by dividing total output by the total amount of input used.