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Suppose Chef Plus manufactures cast iron skillets. One model is a 10-inch skillet that sells for $26. Chef Plus projects sales of 750 10-inch skillets
Suppose Chef Plus manufactures cast iron skillets. One model is a 10-inch skillet that sells for $26. Chef Plus projects sales of 750 10-inch skillets per month. The production costs are $12 per skillet for direct materials, $5 per skillet for direct labor, and $3 per skillet for manufacturing overhead. Chef Plus has 30 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 40% of the next month's sales. Selling and administrative expenses for this product line are $1,200 per month. Chef Plus is budgeted to produce 1,020 skillets in July Compute the total amount budgeted for product costs for July OA. $15,000 B. $18,360 O C. $21,000 O D. $20,400
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