Schmeltz Industries organized in January and recorded the following transactions during its first month of operations:

Jan. 5	Purchased materials on account for $800,000.
Jan. 9	Used materials costing $450,000 on job no. 1001.
Jan. 14	Used materials costing $200,000 on job no. 1002.
Jan. 18	Used materials costing $100,000 on job no. 1003.
Jan. 25	Applied the following direct labor costs to jobs: job no. 1001, $3,600; job no. 1002, $5,400; job no. 1003, $1,350. (Direct labor workers earn $18 per hour.)
Jan. 27	Applied manufacturing overhead to all jobs at a rate of $450 per direct labor hour.
Jan. 28	Completed and transferred job no. 1001 and job no. 1002 to the finished goods warehouse.
Jan. 29	Sold job no. 1001 on account for $725,000.
Jan. 31	Recorded and paid actual January manufacturing overhead costs of $250,000, cash.
Jan. 31	Closed the Manufacturing Overhead account directly to Cost of Goods Sold.

a)

Prepare journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Jan 5 Record the purchases of materials on account. Jan 9th Record the entry for direct materials used on job no. 1001. Jan 14th Record the entry for direct materials used on job no. 1002. Jan 18th Record the entry for direct materials used on job no. 1003. Jan 25th Record direct labor applied to jobs. Jan 27th Record overhead applied to jobs. Jan 28th Record jobs completed and transferred. Jan 29th Record the sale of job no. 1001 on account. Jan 29th Record cost of job no. 1001. Jan 31st Record payment of actual manufacturing overhead costs. Jan 31st Record entry to close manufacturing overhead directly to cost of goods sold.

b.	Compute the balance of the Cost of Goods Sold account at January 31.

Cost of goods sold

c. Determine the company's inventory balances at January 31.

materials inventory =

Work in process inventory=

Finished goods inventory=

d.

Was manufacturing overhead in January overapplied, or was it underapplied?