Figure 5-11

Figure 5-11. 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.
Refer to Figure 5-11.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.