Reference no: EM132816449

Problem - Suppose Chef Kitchen manufactures cast iron skillets. One model is a 10-inch skillet that sells for $34. Chef Kitchen projects sales of 650 10-inch skillets per month. The production costs are $13 per skillet for direct materials, $3 per skillet for direct labor, and $1 per skillet for manufacturing overhead. Chef Kitchen has 35 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 35% of the next month's sales. Selling and administrative expenses for this product line are $1,800 per month. Chef Kitchen is budgeted to produce 843 skillets in July. What the total amount budgeted for product costs for July.