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Suppose Cook Plus manufactures cast iron skillets. One model is a 10-inch skillet that sells for $25. Cook Plus projects sales of 750 10-inch skillets
Suppose Cook Plus manufactures cast iron skillets. One model is a 10-inch skillet that sells for $25. Cook Plus projects sales of 750 10-inch skillets per month. The production costs are $12 per skillet for direct materials, $4 per skillet for direct labor, and $3 per skillet for manufacturing overhead. Cook Plus has 60 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 25% of the next month's sales. Selling and administrative expenses for this product line are $1,100 per month. Cook Plus is budgeted to produce 878 skillets in July Compute the total amount budgeted for product costs for July O A. $16,682 OB. $17,822 O C. $15,968 OD. $14,250
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