Suppose Chef City manufactures cast iron skillets. One model is a 10-inch skillet that sells for $26. Chef City projects sales of 650 10-inch skillets per month. The production costs are $5 per skillet for direct materials, $2 per skillet for direct labor, and $3 per skillet for manufacturing overhead. Chef City has 60 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 40% of the next month's sales. Selling and administrative expenses for this product line are $1,800 per month. Chef City is budgeted to produce 850 skillets in July with a $10 production cost per skillet. Compute the budgeted cost of goods sold for July. O A. $6,500 O B. $8,500 O C. $9,100 O D. $6,790