Selling and administrative expenses for this product line


Question - Suppose Steel Handles manufactures cast iron skillets. One model is a 10-inch skillet that sells for $34. Steel Handles projects sales of $25 10-inch skillets per month. The production costs are $13 per skillet for direct materials, $4 per skillet for direct labor, and $1 per skillet for manufacturing overhead. Street Handles has 40 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 20% of the next month's sales. Selling and administrative expenses for this product line are $1,800 per month. How many 10-inch skillets should Steel Handles produce in July? Please show work.

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Accounting Basics: Selling and administrative expenses for this product line
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