Schmeltz Industries organized in January and recorded the following transactions during its first EXERCISE 17.9 month of operations: Journal Entries, Cost Flows, and Financial Reporting LO17-3 through LO17-5 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. 788 Chapter 17 Job Order Cost Systems and Overhead Allocations

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. Determine the companys inventory balances at January 31.

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