ESSAY. Write your answer in the space provided or on a separate sheet of paper. 1) Drop Anchor takes special orders to manufacture sail boats for high end customers. Complete the job cost sheets for Drop Anchor for September based on the following information. Prepare journal entries to record the transactions as well as post to the job cost sheets. a. Purchased raw materials on credit, $145.000. b. Materials requisitions: Job 240, $48,000; Job 241.536,000: Job 242, 542.000; indirect materials were $12,000. c. Time tickets used to charge labor to jobs: Job 240, 540,000: Job 241. 530,000, Job 242, 535.000, indirect labor is $25,000. d. The company incurred the following additional overhead costs: depreciation of factory building. $70,000; depreciation of factory equipment, $60.000; expired factory insurance, S10,000, utilities and maintenance cost of $20,000 were paid in cash. e. Applied overhead to all three jobs. The predetermined overhead rate is 190% of direct labor cost. f. Transferred jobs 240 and 242 to Finished Goods Inventory. g. Sold job 240 for $300,000 for cash. h. Closed the under-or over-applied overhead account balance by allocating to Cost of Goods Sold. Required: a. Give journal entries to reflect the above transactions b. Calculate the ending balance for the three jobs: #240, 241, and #242 2) Bagger, Inc. uses a process costing system. The following operating and cost data occurred during October: October 1, Inventory: 30,000 units 100% complete for materials (560,000) and 50% complete for direct labor ($7,500) and overhead ($15,000) October 31, Inventory: 20,000 units 100% complete for materials and 30% complete for direct labor and overhead Units started during Oct.: 40,000 units October production costs: Direct materials $110,100 Direct labor 28,900 Overhead 57.800 Materials are added at the beginning of the process. Direct labor and overhead are incurred evenly throughout the process. Prepare the October process cost summary assuming a. the weighted average method of inventory costing. b. FIFO process costing