Michelle Corporation reported the following data for the month of July:

Inventories:

	Beginning		Ending
Raw materials	$	46,000	$	39,500
Work in process	$	25,500	$	36,000
Finished goods	$	41,500	$	56,500

Additional information:

Raw materials purchases	$	75,500
Direct labor cost	$	100,500
Manufacturing overhead cost incurred	$	68,500
Indirect materials included in manufacturing overhead cost incurred	$	11,800
Manufacturing overhead cost applied to Work in Process	$	67,500

Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.

The direct materials cost for July is:

Multiple Choice

• $70,200

• $69,000

• $82,000

• $75,500