25 Figure 2-5. In July, Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000. Overhead totaled $32,000 for the month. Information on inventories was as follows: July 1 July 31 Materials $6,200 $7,100 Work in Process $ 700 $1,200 Finished Goods $3,300 $2,700 Refer to Figure 2-5: What was the cost of direct materials used in July? Answer $21,000 $20,100 $21,900 $20,500