Olson Corporation Constructs New Homes

question 73

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 labour for Olson include?

• A)a debit to finished goods of $750
• B)a credit to wages payable of $750
• C)a credit to finished goods of $750
• D)a debit to work in process of $750

---

Definitions:

Paraphilias

Unusual or atypical sexual interests or practices that may cause distress or impairment in functioning or harm to oneself or others.

Compulsive-like Disorders

Conditions characterized by recurrent, irresistible impulses to perform specific actions that cause distress or functional impairment.

Sexual Contact

Any form of physical interaction of a sexual nature, including but not limited to sexual intercourse.

Children

Young human beings from birth to the onset of puberty, characterized by rapid physical growth and development, as well as learning and socialization processes.