Reference no: EM132835693

Problem - Suppose Cook Plus manufactures cast iron skillets. One model is a 10-inch skillet that sells for $30. Cook Plus projects sales of 525 10-inch skillets per month. The production costs are $13 per skillet for direct materials, $5 per skillet for direct labor, and $6 per skillet for manufacturing overhead. Cook Plus has 65 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 30% of the next month's sales. Selling and administrative expenses for this product line are $1,400 per month. Cook Plus is budgeted to produce 618 skillets in July. Compute the total amount budgeted for product costs for July.