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Suppose Iron Handles manufactures cast iron skillets. One model is a 1 0 - inch skillet that sells for $ 2 5 . Iron Handles

Suppose Iron Handles manufactures cast iron skillets. One model is a 10-inch skillet that sells for $25. Iron Handles projects sales of 52510-inch skillets per month. The production costs are $6 per skillet for direct materials, $5 per skillet for direct labor, and $3 per skillet for manufacturing overhead. Iron Handles has 7510-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 line are $1,900 per month. Iron Handles is budgeted to produce 581 skillets in July with a $14 production cost per skillet.
Compute the budgeted cost of goods sold for July.
A. $8,134
B. $7,350
C. $8,041
D. $9,184
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