39) XYZ provided the following information, compute the direct materials used. Raw materials inventory, January 1 $ 20,000 Raw materials inventory. December 31 40,000 Work in process, January 1 18,000 Work in process, December 31 12,000 Finished goods, January 1 40,000 Finished goods, December 31 32,000 Raw materials purchases 1,700,000 Direct labor 760,000 Factory utilities 150,000 Indirect labor 50,000 Factory depreciation 400,000 Operating expenses 420,000 a. $1,760,000 b. $1,720,000. C. $1,700,000. d. $1,680,000