Reedy Company reports the following information for 2012:

Cost of goods manufactured	$68,250
Direct materials used	27,000
Direct labor incurred	25,000
Work in process inventory, January 1, 2012	11,000

Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31, 2012, is:

Select one:

a. $16,250

b. $8,500

c. $18,750

d. $13,500