At the end of June, Victory Manufacturing Inc. had $24,000 of raw materials on hand. During the month, the company worked on three jobs. At the end of June, Job 123 was complete and ready to be shipped to the customer, while Jobs 124 and 125 were both in process. As of June 30^th, the Job Cost Sheets for the three jobs reported the following:

	Job 123	Job 124	Job 125
Direct materials	$60,000	$24,000	$72,000
Direct labour	$18,000	$6,000	$24,000
Manufacturing overhead	$36,000	$12,000	$48,000
Manufacturing cost to date	$114,000	$42,000	$144,000

During July, Victory Manufacturing Inc. completed Job 123, 124, and 125. As well, the company started and completed Jobs 126 and 127. Items in each of these orders were subsequently shipped to their respective customers in July. In addition, the company started but did not finish Job 128. As of July 31^st, the Job Cost Sheets for the six jobs reported the following:

	Job 123	Job 124	Job 125	Job 126	Job 127	Job 128
Direct materials	$60,000	$30,000	$74,400	$36,000	$96,000	$18,000
Direct labour	$18,000	$9,600	$25,200	$24,000	$36,000	$12,000
Manufacturing overhead	$36,000	$19,200	$50,400	$48,000	$72,000	$24,000
Manufacturing cost to date	$114,000	$58,800	$150,000	$108,000	$204,000	$54,000

In July, the company purchased $144,000 of raw materials.

Required

1. What is the cost of direct materials used in the month of July?
2. Discuss the difference between the direct materials purchased in a month and the direct materials for the month. (No calculations are needed to answer this question).
3. What is the balance in the Raw Materials Inventory account on July 31^st?
4. What is the balance in the WIP Inventory account on July 31^st?
5. What is the balance in the Finished Goods Inventory account on July 31^st?
6. What is the Cost of Goods Manufactured for the month of July? (Hint: See pages 45-46 Statement of COGM and note that the Total Manufacturing Costs Incurred in Step 2 is for costs incurred in the current month.)
7. What is the Cost of Goods Sold for the month of July?