In July, Econo Company Purchased Materials Costing $21,000 and Incurred

Multiple Choice

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

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