Olson Corporation Constructs New Homes

question 119

Multiple Choice

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

• A) debit to Finished Goods of $750.
• B) debit to Wages Payable of $750.
• C) credit to Finished Goods of $750.
• D) debit to Work-in-Process of $750.

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Definitions:

Human Nature

the inherent characteristics, behaviors, and tendencies that are considered typical of all humans.

Token Economy

A behavior modification system based on the systematic reinforcement of target behavior through the distribution and exchange of tokens that can be exchanged for desired incentives.

External Variable

A factor outside the control of individuals that can affect their actions, outcomes, or a study's results, often considered in research to ensure validity.

Self-control

The ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.