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Alpha Company manufactures computers. On July 1, Alpha had $73,000 of materials in inventory. During the month of July, the company purchased $320,000 of materials. On July 31, materials inventory equaled $45,000. Determine the cost of direct materials used in production for the month of July.

a. $348,000

b. $393,000

c. $275,000

d. $292,000