QUESTION 3 Blueberry Manufacturing Company had the following transactions during its first month of operations in January 2019: 1. Purchased raw materials on account, RM850,000. 2. Raw materials of RM300,000 were requisitioned to the production floor. Details of the materials requisition slips showed that RM60,000 was classified as indirect materials. 3. Factory labor costs incurred were RM1,750,000 of which RM1,450,000 allocated to factory wages payable and RM300,000 allocated to employer payroll taxes payable. 4. Time tickets showed that RM1,450,000 was direct labor and RM300,000 was indirect labor. 5. Overhead costs incurred on account were RM1,980,000. 6. Manufacturing overhead was applied at the rate of 120% of direct labor cost. 7. 30% of goods are still incomplete at the end of the month; the rest were completed and transferred to finished goods. 8. The company managed to sell 70% of finished goods with a gross profit of RM600,000. Required: (a) Journalize the above transactions. (25 marks) (b) Open ledger or T-account for manufacturing overhead and post all overhead transactions into the account. Determine whether manufacturing overhead is under-applied or over-applied. Show all your workings. (10 marks) [TOTAL 35 MARKS]