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Question - Suppose Kitchen Helpers manufactures cast iron skillets. One model is a? 10-inch skillet that sells for $26. Kitchen Helpers projects sales of 575 ?10-inch skillets per month. The production costs are $7 per skillet for direct? materials, $4 per skillet for direct? labor, and $6 per skillet for manufacturing overhead. Kitchen Helpers has 45 ?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 $2,000 per month. Kitchen Helpers is budgeted to produce 731 skillets in July.
Compute the total amount budgeted for product costs for July.
A. $9,775
B. $12,427
C. $9,031
D. $13,192
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