Question 3 During May, the following transactions were completed and reported by Jerico Company Materials purchased on account, R60 100 Materials issued to production to lieb-order requisitions: direct materials R50 000: indirect materials RB 800. Payroll for the month: direct labour R75 000; indirect labour R36 000, administrative R28 000 sales R19 000. Depreciation on factory plant and equipment R10 400. Property taxes on the factory accrued during the month R1 450 Insurance on the factory expired with a credit to the prepaid insurance account R6 200 Factory utilities R5500 Advertising paid with cash R7 900 Depreciation on office equipment R800, on sales vehicles R1 650 Legal fees incurred but not yet paid for preparation of lease agreements R750 Overhead is charged to production at a rate or R18 per direct labour hour. Records show 4 000 direct labour hours were worked during the month. Cost of jobs completed during the month R160 000 The company also reported the following beginning balances in its inventory accounts: Materials inventory Work-in-process Finished Goods inventory R7 500 R37 000 R50 000 Required: 3.1 Prepare journal entries to record the transactions occurring in May 3.2 Prepare T-accounts for Materials Inventory. Overhead Control and Work-in-Process Inventory, and Finished Goods Inventory. Post all relevant entries to these accounts. 3.3 Prepare a statement of goods manufactured. 3.4 If the overhead variance is allocated to cost of goods sold, by how much will cost of goods sold decrease or increase