The selected answer is not exactly the correct one. Suppose Chef Kitchen manufac

Question

The selected answer is not exactly the correct one.

Suppose Chef Kitchen manufactures cast iron skillets. One model is a 10-inch skillet that sells for $35. Chef Kitchen projects sales of 600 10-inch skillets per month. The production costs are $13 per skillet for direct materials, $4 per skillet for direct labor, and $5 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 25% of the next month's sales. Selling and administrative expenses for this product line are $1,200 per month. Chef Kitchen is budgeted to produce 715 skillets in July with a $22 production cost per skillet. Compute the budgeted cost of goods sold for July. OA. $13,345 OB. $13,200 O C. $16,500 D. $15,730

Explanation / Answer

Cost of goods sold per unit = Direct materials + Direct labour + Manufacturing overhead

= 13 + 4 + 5

= 22

Cost of goods sold for july = 600 units in sales * 22 per unit

= 13,200

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.