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You have # XXXXX and #c - is there an #a? Just want to make sure I'm answering all parts for you.
Here the answers to B & C. Let me know if you need anything else:
Direct Materials Cost = Materials purchased less materials inventory
610,000 - 45,000 = 565,000
Direct Labor Cost: Total Manufacturing Costs Less Direct materials Cost less Factory Overhead
Factory Overhead for this problem is Indirect labor + Indirect Materials + Other Factory Overhead
1,325,000 - 880,000 - 110,000 - 45,000 - 20,000 = 270,000
There is something wrong with letter B...because thats not a choice with that value
The answer is C, 520,000. I failed to take into account indirect materials.
So the answer is arrived at Materials Purchased less direct materials less indirect materials.