Question

Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for April: Cutting Assembly Finishing direct materials $7,000 $10,000 $3,000 direct labor 3,000 14,000 2,000 applied overhead 4,000 5,000 6,000 There were no work in process inventories and 1,000 podiums were produced. What is the cost transferred out of the assembly department.

a. $43,000
b. $54,000
c. $29,000
d. none of the above
e. $14,000

Answer 1

The cost transferred out of the assembly department is $29,000.

Step-by-step explanation:

The cost transferred out of the assembly department can be calculated by adding the direct materials, direct labor, and applied overhead costs for the assembly process. In this case, the direct materials cost for assembly is $10,000, the direct labor cost is $14,000, and the applied overhead cost is $5,000. Adding these costs together, the total cost transferred out of the assembly department is $10,000 + $14,000 + $5,000 = $29,000. Therefore, the correct answer is (c) $29,000.