Figure 2-14 The following is the data for Lauren Enterprises:

Selling and administrative expenses	$75,000
Direct materials used	265,000
Direct labor (25,000 hours)	300,000
Factory overhead application rate	$16 per DLH

	Inventories
	Beginning	Ending
Direct materials	$50,000	$45,000
Work in process	75,000	90,000
Finished goods	40,000	25,000

Refer to Figure 2-14. What is the cost of goods manufactured?

	a.	$965,000
	b.	$1,115,000
	c.	$950,000
	d.	$955,000