Selected Data Concerning the Past Year's Operations of the Motor

Multiple Choice

Selected data concerning the past year's operations of the Motor City Corporation are as follows: $\begin{array}{lr}\text { Selling and administrative expenses } & \$ 225,000 \\\text { Direct materials used } & 467,500 \\\text { Direct labor ( } 50,000 \text { hours) } & 450,000 \\\text { Factory overhead aplication rate } & 8 \text { per DLH }\end{array}$

$\text { Inventories }$
$\begin{array}{lrr}&\text { Beginning } &\text { Ending }\\\hline\text { Direct material } & \$ 75,000 & \$ 67,500 \\\text { Work in process } & 112,500 & 135,000 \\\text { Finished goods } & 60,000 & 37,500\end{array}$

The cost of direct materials purchased is

A) $467,500.
B) $460,000.
C) $437,500.
D) $445,000.