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Better Air For You, Inc manufactures specialty air cleaning equipment for industrial complexes. Since the equipment is unique, Better Air designs each piece to

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Better Air For You, Inc manufactures specialty air cleaning equipment for industrial complexes. Since the equipment is unique, Better Air 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 2021, all jobs but NM824 & TX825 were completed, and all completed jobs had been delivered to customers with the exception of AR987 and OR123. Balance Direct Direct Machine 1/31/2021 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 NM824 18,670 167,400 48,000 2,800 CA996 0 115,000 136,800 3,300 TX825 0 28,900 12,580 1,700 What is the journal entry for COGS for February? Cost of Goods sold (Debit) $763,964 Finished Goods (Credit) $763,964 O Finished Goods (Debit) $763,964 Cost of Goods Sold (Credit) $763,964 O Cost of Goods Sold (Debit) $370,101 Finished Goods (Credit) $370,101 O Finished Goods (Debit) $370,101 Cost of Goods Sold (credit) $370,101

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