Information from the Records of the Abel Corporation for July

Multiple Choice

Information from the records of the Abel Corporation for July 2018 was as follows: $\begin{array}{lr}\text { Sales } & \$ 1,230,000 \\\text { Selling and administrative expenses } & 210,000 \\\text { Direct materials used } & 264,000 \\\text { Direct labor } & 300,000 \\\text { Factory overhead * } & 405,000 \\\text { *variable overhead is } \$ 205,000 \text {, fixed overhead is } \$ 200,000 \end{array}$

$\text { Inventories }$
$\begin{array}{lrr}&\text { July 1, } 2018 & \text { July } 31,2018\\\hline\text { Direct materials } & \$ 36,000 & \$ 42,000 \\\text { Work in process } & 75,000 & 84,000 \\\text { Finished goods } & 69,000 & 57,000\end{array}$ The conversion cost is

A) $960,000
B) $1,179,000
C) $705,000
D) $564,000