Reference no: EM132072781

Question - Suppose Cook Pro manufactures cast iron skillets. One model is a 10-inch skillet that sells for $32. Cook Pro projects sales of 600 10-inch skillets per month. The production cots are $10 per skillet for direct materials. $5 per skillet for direct labor, and $1 per skillet for manufacturing overhead. Cook Pro has 45 10-inch skillets in inventory at the begging of July but wants to have an ending inventory equal to 30% of the next month's sales. Selling and administrative expenses for the product line are $1,300 per month. Cook Pro is budgeted to produce 735 skillets in July. Please show work.

Compute the total amount budgeted for production costs for July.