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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.$29,000 b.$43,000 c.$54,000 d.$14,000 e.None of these choices are correct.

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ayokenny2001

Answer:

a. $29,000

Explanation:

With regards to the above, the cost transferred out of the assembly department is computed as;

We would sum up all the cost associated with the Assembly department.

= Direct materials + Direct labor + Overhead

Direct materials = $10,000

Direct labor = $14,000

Overhead = $5,000

Therefore, cost transfered out of the assembly department is

= $10,000 + $14,000 + $5,000

= $29,000

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