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.