Bandito Systems manufactures specialty transportation equipment. Since the equipment is unique, Bandito designs each piece to customer specifications. The company uses a job-order cost system and applies overhead on the basis of machine hours using a predetermined overhead rate. For the year, budgeted manufacturing overhead is $6,750,000 and the expected activity level is 120,000 machine hours. Data regarding jobs in February are presented below.

By the end of February 2019, all jobs but UY724 & TX825 were completed, and all completed jobs had been delivered to customers with the exception of AR987 and OR123.

	Balance	Direct	Direct	Machine
	1/31/2019	Materials	Labor	Hours
CO456	$187,576	$68,657	$28,400	745
AR987	169,745	17,625	12,160	145
OR123	103,900	21,680	15,460	380
UY724	18,670	167,400	48,000	2,800
CA996	0	115,000	136,800	3,300
TX825	0	28,900	12,580	1,700

1. What is the ending balance in Work in Process for February?

	a.	$528,675
	b.	$510,005
	c.	$137,105
	d.	$391,570
	e.	$370,101

2.What is the cost of goods manufactured during February?

a.

$1,134,066

b.

$370,101

c.

$1,662,741

d.

d. $763,964

3.What is the journal entry for COGS for February?

	a.	Finished Goods (Debit) $763,964 Cost of Goods Sold (Credit) $763,964
	b.	Cost of Goods sold (Debit) $763,964 Finished Goods (Credit) $763,964
	c.	Finished Goods (Debit) $370,101 Cost of Goods Sold (credit) $370,101
	d.	Cost of Goods Sold (Debit) $370,101 Finished Goods (Credit) $370,101