Finished goods inventory is $190,000.If overhead applied to these goods is $72,000,and the overhead rate is 120% of direct labor,how much direct materials cost was incurred in producing the inventory?

A) $31,600.
B) $58,000.
C) $56,000.
D) $60,000.
E) $86,400.

The overhead rate is 120% of direct labor, meaning overhead = 1.2 * direct labor cost. Given that overhead is $72,000, we can find the direct labor cost by dividing the overhead by 1.2: $72,000 / 1.2 = $60,000 (direct labor cost). To find the direct materials cost, we need to subtract both the overhead and direct labor cost from the finished goods inventory value: $190,000 (finished goods inventory) - $72,000 (overhead) - $60,000 (direct labor) = $58,000 (direct materials cost).