Smith Company Reports the Following Information Factory Overhead Is 75% of the Cost of Direct Labor

Smith Company reports the following information: $$\begin{array} { | l | l | } \hline \text { Cost of goods manufactured } & \$ 68,250 \\\hline \text { Direct materials used } & 27,000 \\\hline \text { Direct labor incurred } & 25,000 \\\hline \text { Work in process inventory, January 1 } & 11,000 \\\hline\end{array}$$ Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31, is

A) $16,250
B) $8,500
C) $18,750
D) $13,500