Figure 5 - 3 Olson Corporation Constructs New Homes

question 28

Multiple Choice

Figure 5 - 3 Olson Corporation constructs new homes.Assume that Olson uses a job costing system.During May 2011, 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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Refer to Figure 5-3.The journal entry to record the requisition of lumber for Olson would include a

• A) debit to Work-in-Process of $4,500.
• B) debit to Materials Inventory of $3,750.
• C) credit to Finished Goods of $3,750.
• D) debit to Work-in-Process of $3,750.

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Definitions:

Torsional Vibrations

Oscillations or vibrations within a mechanical system caused by the twisting of an object around its axis, often leading to fatigue and failure in components.

Non-uniform Rotation

occurs when an object rotates at varying speeds, often leading to mechanical vibrations or inefficiencies in machinery.

U-joints

Universal joints, flexible pivots that allow the transmission shaft to transmit power at an angle.

Electronic Inclinometer

A device used to measure angles of slope (or tilt), elevation, or depression of an object with respect to gravity's direction.