Figure 2-5 -Refer to Figure 2-5

Multiple Choice

Figure 2-5.In July, Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000. Overhead totaled $32,000 for the month. Information on inventories was as follows:
$\begin{array}{lcc}&\text { July } 1&\text { July } 31\\\text { Materials } & \$ 6,200 & \$ 7,100 \\\text { Work in process } & \$ 700 & \$ 1,200 \\\text { Finished goods } & \$ 3,300 & \$ 2,700\end{array}$
-Refer to Figure 2-5. What was the cost of direct materials used in July?

A) $21,000
B) $20,100
C) $21,900
D) $20,500