Farber Corporation uses a job-order cost system. The information below is from the financial records of the company for last year:
|
Total manufacturing costs |
$2,500,000 |
|
Cost of goods manufactured |
$2,425,000 |
|
Predetermined overhead rate |
80% of direct labor cost |
Applied overhead was 30% of total manufacturing costs. The Work in Process inventory at January 1 was 75% of the Work in Process inventory at December 31. The Work in Process inventory at December 31 was:
A) $300,000
B) $225,000
C) $100,000
D) $75,000