Direct Materials	Direct Labor
Standard:
Small	$64	$60
Medium	111	90
Large	135	150
Deluxe:
Small	$78	$120
Medium	152	180
Large	256	240

At the beginning of August, the company has one job, job number 706, in progress from the previous month. This job is for an order of 16 small, deluxe doghouses. As of August 1, $249.60 of direct materials have been used, $384.00 of direct labor have been charged to the job and $38.40 of overhead was applied to the job.

During August, In the Doghouse received an order for 20 large, standard doghouses. This is job number 801 and was completed by the end of the month.

Another order was received during the month, job 802, for 12 medium, deluxe doghouses. At the end of August, job 802 was still in process. $1,094.4 of direct materials has been used, $1,296 of direct labor has been charged to the job, and overhead was applied to job 802 using the predetermined overhead rate of 10% of direct labor cost.

Complete the following job cost sheets for the month of August In the Doghouse and answer the following questions.

Job 706
16 small, deluxe doghouses
Direct materials		$
Direct labor
Overhead
	Total job cost	$

Job 801
20 large, standard doghouses
Direct materials		$
Direct labor
Overhead
	Total job cost	$

Job 802
12 medium, deluxe doghouses
Direct materials		$
Direct labor
Overhead
	Total job cost	$

What is the balance in Work in Process on August 1? ____

What is the balance in Work in Process on August 31? ____

My biggest issue with this is, do you subtract 249.60 from the calculated direct materials or just insert it into the table. Thanks for the help.