Anthony Products manufactures a line of desk chairs.Anthony's production operations are divided into two departments - Department 1 and Department 2.The company uses a process costing system.Anthony incurred the following costs during the year to produce 26,400 chairs: $$\begin{array} { | l | l | }
\hline \text { Department 1 } & \$ 859,500 \
\hline \text { Department 2 } & \$ 294,000 \
\hline
\end{array}$$ If Anthony sells 23,100 chairs during the year,what will be the cost per chair produced? (Round your answer to two decimal places.)
A) $32.56
B) $37.21
C) $43.69
D) $49.94

Question

Anthony Products manufactures a line of desk chairs.Anthony's production operations are divided into two departments - Department 1 and Department 2.The company uses a process costing system.Anthony incurred the following costs during the year to produce 26,400 chairs: $$\begin{array} { | l | l | } 
\hline \text { Department 1 } & \$ 859,500 \
\hline \text { Department 2 } & \$ 294,000 \
\hline
\end{array}$$ If Anthony sells 23,100 chairs during the year,what will be the cost per chair produced? (Round your answer to two decimal places.)
A) $32.56
B) $37.21
C) $43.69
D) $49.94

Quizplus · Accepted Answer

To find the cost per chair produced, add the costs from both departments and divide by the total number of chairs produced. The total cost is $859,500 (Department 1) + $294,000 (Department 2) = $1,153,500. Dividing this by the total chairs produced (26,400) gives a cost per chair of $43.69.

Anthony Products Manufactures a Line of Desk Chairs Department 1 $859,500 Department 2 $294,000\begin{array} { | l | l | } \hline \text { Department 1 } & \$ 859,500 \\\hline \text { Department 2 } & \$ 294,000 \\\hline\end{array} Department 1 Department 2 ​$859,500$294,000​​

Anthony Products Manufactures a Line of Desk Chairs $\begin{array} { | l | l | } \hline \text { Department 1 } & \$ 859,500 \\\hline \text { Department 2 } & \$ 294,000 \\\hline\end{array}$