Econo Company
in July, Econo Company Purchased Materials Costing $21,000

question 153

Multiple Choice

Econo Company
In July, Econo Company purchased materials costing $21,000 and incurred direct labour cost of $18,000. Manufacturing 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 Econo Company. What was the cost of direct materials used in July?

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

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Definitions:

Iliac Crest

The curved upper border of the ilium, the largest bone of the pelvis, serving as an attachment point for abdominal and thigh muscles.

Patellar Tendon

The tendon that connects the patella (kneecap) to the tibia (shinbone), playing a crucial role in the extension of the knee.

Distal Attachment

The site at which a muscle tendon connects to the bone that is farther from the center of the body or point of reference.

Tibial Tuberosity

A large protrusion on the anterior part of the tibia, where the patellar ligament attaches.