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

Multiple Choice

Selected data concerning the past year's operations of the Beach Corporation are as follows: $$\begin{array} { l r } \text { Selling and administrative expenses } & \$ 225,000 \\\text { Direct materials used } & 397,500 \\\text { Direct labour (50,000 hours) } & 450,000 \\\text { Factory overhead application rate } & 8 \text { per DLH }\end{array}$$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Inventories }$
$\begin{array}{lrr}&\text { Beginning}&\text { Ending}\\\text { Direct material } & \$ 75,000 & \$ 67,500 \\\text { Work in process } & 112,500 & 135,000 \\\text { Finished goods } & 60,000 & 37,500\end{array}$
What is the cost of direct materials purchased?

A) $367,500
B) $390,000
C) $397,500
D) $405,000