lson 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. The transaction to record labor for Olson would include a (an): Group of answer choices Decrease to Finished Goods of $750 Decrease to Wages Payable of $750 Increase to Finished Goods of $750 Increase to Work-in-Process of $750
lson 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. The transaction to record labor for Olson would include a (an): Group of answer choices Decrease to Finished Goods of $750 Decrease to Wages Payable of $750 Increase to Finished Goods of $750 Increase to Work-in-Process of $750
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
The transaction to record labor for Olson would include a (an):
Group of answer choices
Decrease to Finished Goods of $750
Decrease to Wages Payable of $750
Increase to Finished Goods of $750
Increase to Work-in-Process of $750
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