Pineworks company utilizes job-order costing. The company began the month of July with $300,000 in raw materials. During the month $75,000 of additional raw materials were purchased and $245,000 of materials were requisitioned from the storeroom as follows:
Direct materials: 80% Indirect Materials 20%
Direct materials used in production during July totaled:
A) $196,000
B) $300,000
C) $245,000
D) $130,000