"He has a cake in the kitchen."
Translation:El are un tort la bucătărie.
Yes, you are right. " La " shows direction. " Mă duc la (către) bucătărie = I am going to ( towards) the kitchen". Use "la" when the subject is outside the kitchen. Also: " duc tortul la bucătarie= I am taking the cake to the kitchen". Use" În=in" when the subject is inside the kitchen . Ex. If somebody askes: " where are you?" You answer: " Sunt în bucătărie= I am in the kitchen". Also: " El are un tort ÎN bucătărie = He has a cake IN the kitchen". In general: "la= to, at" and " în= in"