Inventory Balances for Marshall, Inc During June, Purchases of Direct Materials Were $1,500

question 63

Multiple Choice

Inventory balances for Marshall, Inc., in June 2018 are as follows: $$\begin{array} { l c c } & \text { June } 1,2018 & \text { June } 30,2018 \\\text { Raw materials } & \$ 1,125 & \$ 875 \\\text { Work in process } & 2,000 & 1,550 \\\text { Finished goods } & 4,500 & 3,750\end{array}$$
During June, purchases of direct materials were $1,500. Direct labor and factory overhead costs were $2,500 and $3,500, respectively.
Conversion costs for June were

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

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