Reference no: EM133124867

Question - 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.

What the journal entry to record labor for Olson?

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.