Capri Boat Corporation uses a job order cost system and applies overhead based on a percentage of direct labor cost. Cost flows through the Work in Process Inventory account during March are given below:

Work in Process

Beginning Balance 0

Transferred Out 157,000

Direct Materials 40,000

Direct Labor 79,000

Overhead 118,500

Ending Balance 80,500

Only Job #007 was still in process at the end of March and this job had been charged with $25,000 in direct materials cost.

The amount of direct materials cost charged to completed jobs during March was:

$12,500.

$15,000.

$39,500.

$80,500.