General Motors makes one product and has provided the following information to help prepare the master budget for the next four months of operations:

Budgeted selling price per unit $ 97

Budgeted unit sales (all on credit):

January 10,000

February 12,000

March 13,300

April 15,200 ________________________________________

Raw materials requirement per unit of output 4 pounds

Raw materials cost $ 1.00 per pound

Direct labor requirement per unit of output 2.5

direct labor-hours Direct labor wage rate

$ 23.00 per direct labor-hour Predetermined overhead rate (all variable)

$ 9.00 per direct labor-hour

Variable selling and administrative expense $ 3.10 per unit sold

Fixed selling and administrative expense $ 70,000 per month

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Credit sales are collected: 30% in the month of the sale 70% in the following month Raw materials purchases are paid: 30% in the month of purchase 70% in the following month The ending finished goods inventory should equal 30% of the following month's sales. The ending raw materials inventory should equal 10% of the following month's raw materials production needs. The estimated cost of goods sold for February is closest to:

Select one:

a. $738,000

b. $1,008,000

c. $270,000

d. $846,000