Lund Company applies manufacturing overhead to jobs using a predetermined overhead rate of 70% of direct labor cost. Any underapplied or overapplied manufacturing 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 |
$ |
31,000 |
| Used in production |
$ |
32,000 |
| Labor: |
|
|
| Direct labor hours worked during the month |
|
2,400 |
| Direct labor cost incurred |
$ |
19,200 |
| Indirect labour cost incurred |
$ |
7,100 |
| Manufacturing overhead costs incurred (total) |
$ |
17,800 |
| Inventories: |
|
|
| Raw materials (all direct), March 31 |
$ |
8,300 |
| Work in process, March 1 |
$ |
11,300 |
| Work in process, March 31 |
$ |
15,600* |
| *contains $5,800 in direct labor cost. |
|
|
The balance on March 1 in the Raw Materials inventory account was?