Answer the Following Questions Using the Information Below:
Cronulla Products

Answer the following questions using the information below:
Cronulla Products uses a normal cost system and had the following data available for 2018:
$$\begin{array} { l c } \text { Direct materials purchased on account } & \$ 74000 \\\text { Direct materials requisitioned } & 41000 \\\text { Direct labour cost incurred } & 65000 \\& \\\text { Factory overhead incurred } & 73000 \\\text { Cost of goods completed } & 146000 \\\text { Cost of goods sold } & 128000 \\& \\& 13000 \\\text { Be ginning direct materials inventory } & 32000 \\\text { Beginning WIP inventory } & 29000 \\\text { Beginning firished goods inventory } & \\\text { Overhead application rate, } & 125 \text { percent }\end{array}$$
-The ending balance of direct materials inventory is:

A) $46 000.
B) $87 000.
C) $54 000.
D) $41 000.