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

question 190

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 sold for July?

• A)$69,600
• B)$70,200
• C)$71,100
• D)$71,300

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Definitions:

Government Enforcement

Refers to the actions and measures taken by government authorities to ensure compliance with laws, regulations, and policies.

Private-Sector Coercion

The exertion of pressure or compulsion on individuals or entities by private organizations or businesses, rather than by governments.

Market Economy

An economic system in which production and prices are determined by unrestricted competition between privately owned businesses, without substantial government intervention in the form of price controls.

Economic Efficiency

A situation where all resources are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.