The Sumter Company Recently Had a Fire in Its Accounting

Multiple Choice

The Sumter Company recently had a fire in its accounting office, destroying most of its records. Only the following information could be salvaged for 2018: $$\begin{array} { l r } \text { Direct labor } & \$ 400,000 \\\text { Factory overhead } & 200,000 \\\text { Cost of goods sold } & 800,000 \\\text { Work in process, January 1 } & 80,000 \\\text { Finished goods, January 1 } & 160,000 \\\text { Work in process, December } 31 & 100,000 \\\text { Finished goods, December } 31 & 120,000\end{array}$$
The cost of direct materials used in production during 2018 is

A) $140,000.
B) $180,000.
C) $200,000.
D) $260,000.