Ot This Question: 1 pt Suppose Kitchen Helpers manufactures cast iron skillets.

Question

Ot This Question: 1 pt Suppose Kitchen Helpers manufactures cast iron skillets. One model is a 10-inch skillet that sells for $34. Kitchen Helpers projects sales of 750 10-inch skillets per month. The production costs are $5 per skillet for direct materials, $3 per skillet for direct labor, and $6 per skillet for manufacturing overhead. Kitchen Helpers has 65 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 ne are S1 100 per month. Kitchen Help ers as budgeted costo goods sold of S1050 for July. Compute the budgeted gross profit for July. O A. $21,392 O B. $12,790 C. $15,000 D. $19,182 Click to select your answer.

Explanation / Answer

Budgeted gross profit = Sales-Cost of goods sold =(750*34)-10500= 15000 Option C is correct

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