Question
Leonardo corp. Manufactures a wooden desk which is processed in a continuous manufacturing system. Production requires 3 steps of sequential processing: cutting, assembly, and painting.
Leonardo corp. Manufactures a wooden desk which is processed in a continuous manufacturing system. Production requires 3 steps of sequential processing: cutting, assembly, and painting. The cost information obtained for each processing department during January is as follows:
| Cutting | Assembly | Finishing | |
| Direct Materials | $7,000 | $10,000 | $3,000 |
| Direct Labor | 3,000 | 14,000 | 2,000 |
| Overhead applied | 4,000 | 5,000 | 6,000 |
There was NO BEGINNING/ENDING WORK-IN-PROCESS in any department during January. Total 1,000 units of wooden desks were produced during the period.
What would be the cost transferred out of the ASSEMBLY department?
- $43,000
- $29,000
- $54,000
- $14,000
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
