Martinez Products manufactures a line of desk chairs. Martinez's production operations are divided into two departments — Department 1 and Department 2. The company uses a process costing system. Martinez incurred the following costs during the year to produce 25,700 chairs: Department 1 $863,500 Department 2 $287,000 If Martinez sells 22,600 chairs during the year, what will be the cost per chair produced? (Round your answer to two decimal places.) A. $38.21 B. $44.77 C. $33.60 D. $50.91
Martinez Products manufactures a line of desk chairs. Martinez's production operations are divided into two departments — Department 1 and Department 2. The company uses a process costing system. Martinez incurred the following costs during the year to produce 25,700 chairs: Department 1 $863,500 Department 2 $287,000 If Martinez sells 22,600 chairs during the year, what will be the cost per chair produced? (Round your answer to two decimal places.) A. $38.21 B. $44.77 C. $33.60 D. $50.91
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Martinez Products manufactures a line of desk chairs. Martinez's production operations are divided into two departments
process costing system. Martinez incurred the following costs during the year to produce 25,700 chairs:
—
Department 1 and Department 2. The company uses a |
Department 1
|
$863,500
|
|
Department 2
|
$287,000
|
If Martinez sells 22,600 chairs during the year, what will be the cost per chair produced? (Round your answer to two decimal places.)
$38.21
$44.77
$33.60
$50.91
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