Drop Anchor takes special orders to manufacture sailboats for high-end customers. During February 2022, it engaged in the following transactions.

1. Purchased raw materials on credit, $145,000, Feb. 2.

1. Feb. 4, primary materials were requisitioned for three orders:
   • Job 240:$45,000
   • Job 241: $36,000
   • Job 242: $30,000.
   • In addition, indirect materials requisitioned totaled $3,000.

1. Feb. 15, time tickets used to charge labor to jobs:
   • Job 240, $40,000
   • Job 241, $30,000
   • Job 242, $35,000.
   • Indirect labor for the month cost $25,000.

1. Jobs 240 and 242 were finished. This was recorded on Feb. 21.

1. Job 240 was sold for $300,000 for cash. The boat was delivered on Feb. 23 and the cash was received at the same time.

1. The company incurred the following additional actual overhead costs, which were recorded on Feb. 28.

• Depreciation on the factory building, $70,000;
• Utilities on the factory, $6,000, were due as of Feb. 28. It will be paid in March.

1. The company recorded the applied overhead to the jobs worked on in February. The entry is recorded on Feb. 28. The predetermined overhead rate is 190% of direct labor cost.

Required: Make sure all calculations are shown.

1. Prepare job cost sheets for each of the three jobs for the month.
2. Prepare journal entries to record the transactions below Show any calculations required for the entries in an explanation to the entry. Skip a row after each complete journal entry.
3. Calculate the gross profit on the sale of job 240.Show the calculation.
4. Determine the February 28, end-of-month balance for each of the following accounts, Show all amounts/calculations or reference each amount in through Excel.

• Work-in-Process Inventory
• Finished Goods Inventory
• Cost of Goods Sold