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 26,300 chairs: Department 1 $860,500 Department 2 $295,000 If Martinez sells 22,700 chairs during the year, what will be the cost per chair produced? (Round your answer to two decimal places.) A. $37.91 B. $50.90 C. $43.94 D. 32.72
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 26,300 chairs: Department 1 $860,500 Department 2 $295,000 If Martinez sells 22,700 chairs during the year, what will be the cost per chair produced? (Round your answer to two decimal places.) A. $37.91 B. $50.90 C. $43.94 D. 32.72
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
—
Department 1 and Department 2. The company uses a 26,300
chairs:|
Department 1
|
$860,500
|
|
Department 2
|
$295,000
|
If Martinez sells
22,700
chairs during the year, what will be the cost per chair produced? (Round your answer to two decimal places.)$37.91
$50.90
$43.94
32.72
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