Sanders Company reports the following information for 2012: cost of goods manufactured $69,500 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 laor. Work in process inventory on December 31, 2012 is: a. $22,500 b. $12,250 c. $13,500 d $10,200