Lund Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any under- or overapplied overhead cost is closed out to Cost of Goods Sold at the end of the month. During March, the following transactions were recorded by the company: Raw materials (all direct materials): Purchased during the month $27,000 Used in production $28,000 Labor: Direct labor hours worked during the month 2,500 Direct labor cost incurred $20,000 Indirect labor cost incurred $5,500 Manufacturing overhead costs incurred (total) $17,000 Inventories: Raw materials (all direct) March 31 $7,500 Work in process, March 1 $10,500 Work in process, March 31 $14,000 * *contains $5,000 of direct labor cost The amount of direct materials cost in the March 31 Work in Process inventory account was: Question 7 options: $8,750 None of the choices $3,500 $9,000 $5,250