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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

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 $ 95,000 $ 58,000
Work in process 84,000 60,000
Finished goods 133,000 118,000
Other information
Direct materials purchases $ 342,000
Cost of goods available for sale 968,000
Actual factory overhead costs 278,000

The cost of direct materials used for production is:

Multiple Choice

  • $364,500.

  • $315,000.

  • $379,000.

  • $342,000.

  • $342,000.

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