Under MSRB rules, a registered representative may perform a municipal securities transaction for a customer that he or she believes is unsuitable:

$118,000

Explanation:

The formula and the estimation of the direct material used is shown below:

Direct material used = Starting raw material balance + purchase made during the year- ending raw material balance

= $42,000 + $127,000 - $51,000

= $118,000

Adding the purchased amount and deducting the ending raw material balance to the beginning raw material balance for computing the direct material used