Newton Company Recently Had a Fire in Its Accounting Office,destroying

Newton Company recently had a fire in its accounting office,destroying most of its records.Only the following information could be salvaged for the year: $\begin{array}{lr}\text { Direct labour } & \$ 400,000 \\\text { Factory overhead } & 200,000 \\\text { Cost of goods sold } & 800,000 \\\text { Work in process, January 1 } & 80,000 \\\text { Finished goods, January 1 } & 160,000 \\\text { Work in process, December 31 } & 100,000 \\\text { Finished goods, December 31 } & 120,000\end{array}$
What is the cost of direct materials used in production during the year?

A) $140,000
B) $180,000
C) $200,000
D) $260,000