Use the information below to answer the following question(s).

The following account balances at the beginning of January were selected from the general ledger of Sailor Manufacturing Company:

Work in process inventory

\quad

\quad

$0
Raw materials inventory

\quad

\quad

$26,000
Finished goods inventory

\quad

\quad

$46,000

Additional data:
1) Actual manufacturing overhead for January amounted to $62,000.
2) Total direct labour cost for January was $57,000.
3) The predetermined manufacturing overhead rate is based on direct labour cost. The budget for the year called for $300,000 of direct labour cost and $360,000 of manufacturing overhead costs.
4) The only job unfinished on January 31 was Job No. 1002, for which total direct labour charges were $6,300 (800 direct labour hours) and total direct material charges were $12,000.
5) Cost of direct materials placed in production during January totaled $101,000.
6) January 31 balance in raw materials inventory was $32,000.
7) Finished goods inventory balance on January 31 was $34,500.
-What is the work in process inventory balance on January 31 at Sailor Manufacturing Company?
A) $7,560
B) $25,860
C) $23,550
D) $49,550

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