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: $$\begin{array} { | l | l | }
\hline \text { Department 1 } & \$ 863,500 \
\hline \text { Department 2 } & \$ 287,000 \
\hline
\end{array}$$ If Martinez sells 22,600 chairs during the year,what will be the cost per chair produced? (Round your answer to two decimal places.)

Question

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: $$\begin{array} { | l | l | } 
\hline \text { Department 1 } & \$ 863,500 \
\hline \text { Department 2 } & \$ 287,000 \
\hline
\end{array}$$ If Martinez sells 22,600 chairs during the year,what will be the cost per chair produced? (Round your answer to two decimal places.)

Quizplus · Accepted Answer

The total cost to produce the chairs is $863,500 + $287,000 = $1,150,500. Dividing this by the number of chairs produced (25,700) gives a cost per chair of $44.77.

Martinez Products Manufactures a Line of Desk Chairs Department 1 $863,500 Department 2 $287,000\begin{array} { | l | l | } \hline \text { Department 1 } & \$ 863,500 \\\hline \text { Department 2 } & \$ 287,000 \\\hline\end{array} Department 1 Department 2 ​$863,500$287,000​​

Martinez Products Manufactures a Line of Desk Chairs $\begin{array} { | l | l | } \hline \text { Department 1 } & \$ 863,500 \\\hline \text { Department 2 } & \$ 287,000 \\\hline\end{array}$