Suppose CookPlus manufactures cast iron skillets. One model is a10-inch skillet that sells for $36. CookPlus projects sales of 700 10-inch skillets per month. The production costs are $10 per skillet for directmaterials, $2 per skillet for directlabor, and $4 per skillet for manufacturing overhead. CookPlus has 35 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 35% of the nextmonth's sales. Selling and administrative expenses for this product line are $1,400 per month. CookPlus is budgeted to produce 910 skillets in July with a $16 production cost per skillet.

Compute the budgeted cost of goods sold for July