Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 120% of direct labor cost. Selected data concerning the past year's operation of the company are presented below.

January 1December 31Direct materials$78,000$41,000Work in process67,00043,000Finished goods116,000101,000Other informationDirect materials purchases$325,000Cost of goods available for sale951,000Actual factory overhead costs261,000

The cost of direct materials used for production is:

Multiple Choice

• $353,800.
• $298,000.
• $308,000.
• $362,000.
• $325,000.