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

Multiple Choice

Selected data concerning the past year's operations of the Intelligent Creatures Corporation are as follows: $\begin{array}{lr}\text { Selling and administrative expenses } & \$ 225,000 \\\text { Direct materials used } & 397,500 \\\text { Direct labour } & 450,000\end{array}$

$\begin{array}{lrr} &\text { Inventories }\\& \text { Dec. } 1 & \text { Dec. } 31 \\\text { Direct materials } & \$ 36,000 & \$ 42,000 \\\text { Work in process } & 75,000 & 84,000 \\\text { Finished goods } & 69,000 & 57,000\end{array}$ What is the cost of direct materials purchased?

A) $367,500
B) $397,500
C) $403,500
D) $405,000