The ABC company reports the following information for the current year. Sales $1,980 Selling expenses 350 Manufacturing overhead 460 Direct labor 400 Administrative expenses 500 Purchases of Direct materials 540 Finished goods inventory, beginning 240 Finished goods inventory, ending 1320 Direct materials inventory. beginning hp 100 Work in process inventory, ending What was the cost of the direct materials used in production during the year? $40 $640 $500 $240 hp