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Suppose chef city manufactures cast iron skillets. one model is a 10-inch skillet that sells for $28. chef city projects sales of 625 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 25% of the next month's sales. selling and administrative expenses for this product line are $1,000 per month. chef city is budgeted to produce 721 skillets in july with a $10 production cost per skillet.
compute the budgeted cost of goods sold for july.
a) $5,887
b) $7,810
c) $7,210
d) $6,250
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Suppose chef city manufactures cast iron skillets. one model is a 10-inch skillet that sells for $28...
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