Question
Suppose Kitchen Professional manufactures cast iron skillets. One model is a 10-inch skillet that sells for $ 32. Kitchen Professional projects sales of 55010-inch skillets
Suppose Kitchen Professional manufactures cast iron skillets. One model is a 10-inch skillet that sells for $ 32. Kitchen Professional projects sales of 55010-inch skillets per month. The production costs are $ 8per skillet for direct materials, $ 4 per skillet for direct labor, and $ 1
per skillet for manufacturing overhead. Kitchen Professional has 40 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
$ 1,400 per month. Kitchen Professional is budgeted to produce 730 skillets in July.
Compute the total amount budgeted for product costs for July?
( PLEASE ATTACH A FORMULA FOR THIS PROBLEM )
A. $ 9,720
B.$ 10,010
C.$ 7,150
D.$ 9,490
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