Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below.

	January 1	December 31
Direct materials	$77,000	$40,000
Work in process	66,000	42,000
Finished goods	115,000	100,000
Other information
Direct materials purchases		$324,000
Cost of goods available for sale		950,000
Actual factory overhead costs		260,000

The cost of direct materials used for production is:

$351,000.

$297,000.

$361,000.

$306,000.

$324,000