Inventory Balances for Ray,Inc During March,purchases of Direct Materials Were $1,500

Multiple Choice

Inventory balances for Ray,Inc.,in March are as follows: $\begin{array}{lrr}&\text { March 1}&\text { March 31}\\\text { Raw materials } & \$ 1,125 & \$ 875 \\\text { Work in process } & 2,000 & 1,550 \\\text { Finished goods } & 4,500 & 3,750\end{array}$ During March,purchases of direct materials were $1,500.Direct labour and factory overhead costs were $2,500 and $3,500,respectively.
What were the conversion costs for March?

A) $6,000
B) $7,500
C) $7,750
D) $8,200