1. 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

2. Susan Corp wants to pay dividends to their investors . On July 23, 2021, the company publicly announces that the company is going to pay the dividend to investors on record as of September 1, 2021. The dividend will be paid to investors on September 10, 2021.

On what date will Susan Corp reduce retained earnings for these dividends?

Group of answer choices

July 23

September 1

September 10

December 31

Retained earnings is not reduced by dividends.

3. Laudermilk produces dairy equipment. Most of its jobs have a number of units per job. The company has two different departments through which all jobs pass. Overhead is applied using a plantwide rate of $15 per direct labor hour. Direct labor wages average $10 an hour. Data for Job #3 for the year is:

Direct materials	$60,000
Direct labor costs
Dept. A	80,000
Dept. B	20,000
Machine hours used
Dept. A	200
Dept. B	2,400
Units produced	40,000

Compute the total cost of Job #3.