Rafter Company Uses a Standard-Cost Just-In-Time Manufacturing System

Multiple Choice

Rafter Company uses a standard-cost just-in-time manufacturing system. During the first year of the company's operation direct materials at a standard cost of $100,000 were purchased and charged to Cost of Goods Sold. At the end of the year $45,000 of this can be traced to various inventory accounts: 60 percent to direct materials, 25 percent to Work-in-Process, and 15 percent to Finished Goods. Which of the following entries is the correct end-of-period adjustment?

A) Item A
B) Item B
C) Item C
D) Item D