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

Question

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

Quizplus · Accepted Answer

The cost transferred out of the assembly department includes direct materials, direct labor, and applied overhead for both the cutting and assembly processes. This is calculated as follows: Cutting ($7,000 + $3,000 + $4,000 = $14,000) + Assembly ($10,000 + $14,000 + $5,000 = $29,000). The total is $14,000 + $29,000 = $43,000.

Leandro Corp There Were No Work in Process Inventories and 1,000 Podiums