Question

Martinez Products manufactures a line of desk chairs.​ Martinez's production operations are divided into two departments long dash Department 1 and Department 2. The company uses a process costing system. Martinez incurred the following costs during the year to produce 26 comma 100 ​chairs: Department 1 $ 863 comma 500 Department 2 $ 288 comma 000 If Martinez sells 22 comma 500 chairs during the​ year, what will be the cost per chair​ produced? (Round your answer to two decimal​ places.)

Answer 1

Answer:

$34.08

Explanation:

Number of chairs produced = 26,000

Department 1 cost = $863,500

Department 2 cost = $22,500

Total cost = Department 1 cost + Department 2 cost = $863,500 + $22,500 = $886,000

Cost per chair produced = Total cost ÷ Number of chairs produced = $886,000 ÷ 26,000 = $34.08.

Therefore, the cost per chair​ produced is $34.08.