The following data have been taken from the accounting records of Karmint Corporation for the just completed year. Sales $830,000 Raw materials inventory, beginning $50,000 Raw materials inventory, ending $40,000 Purchases of raw materials $170,000 Direct labor $140,000 Factory overhead $160,000 Administrative expenses $120,000 Selling expenses $150,000 Work in process inventory, $30,000 beginning Work in process inventory, ending $50,000 Finished goods inventory, $80,000 beginning Finished goods inventory, ending $100,000 The cost of the raw materials used in production during the year (in thousands of dollars) was: a) $180,000. b) $160,000.