LO17-3 through L017-5 Schmeltz EXERCISE 17.9 Journal Entries. Cost Flows, Jan. 5 Purchased materials on account for $800,000. Industries organized in January and recorded the following transactions during its first month of operations and Financial Reporting Jan. 9 Jan. 14 Jan. 18 Used materials costing $450,000 on job no. 1001. Used materials costing $200,000 on job no. 1002. Used materials costing $100,000 on job no. 1003 788 Chapter 17 Job Order Cost Systems and Overhead Allocations Applied the following direct labor costs to jobs: job no. 1001, $3,600; job no. 1002, S5,400: job no. 1003, $1,350. (Direct labor workers earn $18 per hour.) Applied manufacturing overhead to all jobs at a rate of S450 per direct labor hour. Completed and transferred job no. 1001 and job no. 1002 to the finished goods warehouse. Sold job no. 1001 on account for $725,000. Recorded and paid actual January manufacturing overhead costs of $250,000, cash. Jan. 25 Jan. 27 Jan. 28 Jan. 29 Jan. 31 Jan. 31 Closed the Manufacturing Overhead account directly to Cost of Goods Sold. a. Prepare journal entries for each of the above transactions b. Compute the balance of the Cost of Goods Sold account at January 31. c. d. Determine the company's inventory balances at January 31. Was manufacturing overhead in January overapplied, or was it underapplied? Explain