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ARMA, Inc. produces plumbing articles that are sold to wholesalers all over Northern Europe. At the beginning of the financial year, inventories were valued as follows: Materials Work in process Finished goods $ 27,274 42,894 148,512 During the year, materials have been purchased for a total of $342,708, and the following salaries have been paid: Direct manufacturing labor $317,530 Indirect manufacturing labor 102,400 Sales and administrative salaries 205,650 Other indirect production costs of $96,315 were incurred, which include electricity, water, heat, repair and maintenance, insurance and depreciation. $848,340 of goods were finished and transferred to the finished goods inventory. At the end of the year, the following ending inventories of materials and finished goods were established: Materials $ 35,361 Finished goods 106,845 What is (a) ending inventory of work in process and (b) the value of the item production cost (cost of goods sold) in the income statement for the year? A. (a) $42,894; (b) $741,495. B. (a) $76,474; (b) $890,007. C. (a) $45,420; (b) $890,007. D. (a) $45,420; (b) $887,481. E. (a) $53,507; (b) $890,007