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Question(s) / Instruction(s):

Cardan Inc. had the following activities and costs during 2008:

Direct materials:              

Beginning inventory                                       $ 50,000

Purchases                                                           154,000

Ending inventory                                              26,000

Direct manufacturing labor                          40,000

Manufacturing overhead                                     30,000

Beginning work-in-process inventory     2,000

Ending work-in-process inventory            10,000

Beginning finished-goods inventory        60,000

Ending finished-goods inventory                              40,000

What is Cardan’s cost of direct materials used in 2008?

a.            $24,000

b.            $128,000

c.             $178,000

d.            $204,000

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