Peterson Enterprises manufactures picture frames

Its production operations are divided into two departments - Assembly and Finishing. The company uses a process costing system. Peterson incurred the following costs during the year to produce 6,000 picture frames:

Assembly $9,700
Finishing $2,250

If Peterson can only sell 5,100 picture frames during the year, what will be the cost per unit of the picture frames produced? (Round your answer to the nearest cent.)
A) $2.34
B) $1.99
C) $1.62
D) $1.90

B .B) Total costs / number of units produced = cost per unit
$11,950 / 6,000 = $1.99

Business

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