Below is the activity in Salem Inc's Work In Process and Finished Goods accounts (could be incomplete) for the month of January :

Work In Process;

Beg Balance : 1,000

Direct Materials Used : 15,000

Direct Labor Incurred : 7,000

Applied Manufacturing Overhead : 3,500

Transfer to Finished Goods : ??

Finished Goods:

Beginning Balance : 250

Ending Balance : 400

Question : What is the cost of goods sold for Salem for January ?

A) 17,700 B) 7,800 C) 17,550 D) 24,500 E) None

Please show detailed help with answer and steps. Thanks