Canmore Company Has the Following Data Pertaining to 2018 Factory Overhead Rate Is 125 Percent of Direct Labor Costs

Multiple Choice

Canmore Company has the following data pertaining to 2018: $$\begin{array} { l r } \text { Beginning materials inventory } & \$ 50,000 \\\text { Beginning work-in-process inventory } & 0 \\\text { Beginning finished goods inventory } & 0 \\\text { Materials placed into production } & 125,000 \\\text { Materials purchased on account } & 137,500 \\\text { Direct labor incurred (10,000 hours) } & 62,500 \\\text { Cost of goods completed (Job B B8) } & 25,000\end{array}$$
Factory overhead rate is 125 percent of direct labor costs.
What is the ending materials inventory balance for Canmore in 2018?

A) $50,000
B) $62,500
C) $12,500
D) $37,500