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Suppose Cook Plus manufactures cast iron skillets. One model is a 10-inch skillet that sells for $34. Cook Plus projects sales of 575 10-inch skillets
Suppose Cook Plus manufactures cast iron skillets. One model is a 10-inch skillet that sells for $34. Cook Plus projects sales of 575 10-inch skillets per month. The production costs are $6 per skillet for direct materials, $3 per skillet for direct labor, and $1 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 $2,000 per month. Cook Plus is budgeted to produce 659 skillets in July with a $10 production cost per skillet. Compute the budgeted cost of goods sold for July. O A. $6,590 OB. $7,011 OC. $5,750 OD. $7,190
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