Answer:
Marcelino Co.
a. Total materials purchases = $530,000
b. Direct materials used in production:
Beginning balance of direct materials = $73,000
Current direct materials used =              442,000
Total materials used in production =    $515,000
c. Direct labor paid and assigned to Work in Process Inventory:
                                         Job 307      Job 308           Total
Beginning Direct labor   $17,000                            $17,000
Current Direct labor       153,000     $102,000     255,000
Total Direct labor         $170,000     $102,000   $272,000
d. Indirect labor paid and assigned to Factory Overhead:
Indirect labor   $28,000
Applied =          $27,720 (99% ($193,000/$195,000))
e. Overhead costs applied to Work in Process Inventory
= 
Job 307      Job 308           Total
76,500          51,000     $127,500
f. Actual overhead costs incurred and paid in cash:
Indirect materials                            $51,000
Indirect labor,                                 $28,000
Factory rent,                                  $40,000
Factory utilities,                             $25,000
Total overhead costs =                $144,000
g. Transfer of Jobs 306 and 307 to Finished Goods Inventory:
                                               Job 307      Job 308           Total
Balances on March 31
Direct materials                   $42,000                            $42,000
Direct labor                             17,000                               17,000
Applied overhead                   8,500                                 8,500
Costs during April
Direct materials                  210,000      $100,000     $310,000
Direct labor                         153,000        102,000      255,000
Applied overhead                76,500          51,000        127,500
Total cost                        $507,000     $253,000    $760,000
h. Cost of goods sold for Job 306 = $349,000
i. Revenue from the sale of Job 306 = $700,000
j. Assignment of underapplied overhead to the Cost of Goods Sold account:
Total overhead applied = $179,000
Total overhead incurred = 195,000
Underapplied overhead = $16,000
Explanation:
a) Data and Calculations:
Raw materials Inventory (March 31) $88,000
Purchases of raw materials during April = $530,000
Factory Payroll cost = $386,000
Overhead costs = 
Indirect materials                            $51,000
Indirect labor,                                 $28,000
Factory rent,                                  $40,000
Factory utilities,                             $25,000
Factory equipment depreciation, $51,000
Total overhead costs =               $195,000
                                  Job 306      Job 307      Job 308           Total
Balances on March 31
Direct materials        $31,000     $42,000                            $73,000
Direct labor                 21,000        17,000                               38,000
Applied overhead      10,500         8,500                                19,000
Balances                 $62,500     $67,500                           $130,000
Costs during April
Direct materials      132,000      210,000      $100,000    $442,000
Direct labor             103,000      153,000        102,000      358,000
Applied overhead    51,500        76,500          51,000       179,000
Total cost            $349,000   $507,000     $253,000  $1,109,000