Reference no: EM131700815

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 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?

A. $ 9,720

B. $ 10,010

C. $ 7,150

D. $ 9,490