Inventory Balances for the Jameson Company in October 2018 Are

Multiple Choice

Inventory balances for the Jameson Company in October 2018 are as follows: $$\begin{array} { l c c } & \text { October } 1,2018 & \text { October } 31,2018 \\\text { Raw materials } & \$ 27,000 & \$ 21,000 \\\text { Work in process } & 48,000 & 37,200 \\\text { Finished goods } & 108,000 & 90,000\end{array}$$
During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively.
What is the cost of materials used in production?

A) $36,000
B) $42,000
C) $47,800
D) $54,000