20. Cherry Hill Glass Company uses a normal costing system. The following information pertains to the year just ended.

Total manufacturing costs added during the period were $1,250,000.

Cost of goods manufactured was $1,212,500.

Allocated manufacturing overhead was 30% of total manufacturing costs added during the period.

Manufacturing overhead was allocated to production at a rate of 80% of direct labor cost.

Work-in-process inventory on January 1 was 75% of work-in-process inventory on December 31.

What is the value of the companys work-in-process inventory on December 31?

a. $37,500

b. $100,000

c. $50,000

d. $150,000

e. $75,000