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

question 104

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 goods manufactured for July?

• A)$69,100
• B)$69,600
• C)$70,500
• D)$70,700

---

Definitions:

Registered

Officially listed or recorded by an authority to acknowledge legal status or compliance.

Equity of Redemption

Equity of redemption is the legal right of a mortgagor to reclaim their property after having paid off the full amount of the mortgage plus any interest and costs due.

Unregistered Mortgage

A mortgage that has not been formally registered with the relevant legal or governmental registry, potentially affecting its enforceability and priority.

Mortgage

An agreement made between a debtor and a creditor in which the title to property of the debtor is transferred to the creditor as security for payment of the debt.