Question

Pasadena Candle Inc. budgeted production of 785,000 candles for January. Wax is required to produce a...

Pasadena Candle Inc. budgeted production of 785,000 candles for January. Wax is required to produce a candle. Assume 10 ounces of wax is required for each candle. The estimated January 1 wax inventory is 16,000 pounds. The desired January 31 wax inventory is 12,500 pounds. If candle wax costs \$1.24 per pound, determine the direct materials purchases budget for January. (One pound = 16 ounces.) For those boxes in which you must enter subtracted or negative numbers use a minus sign.

 Pasadena Candle Inc. Direct Materials Purchases Budget For the Month Ending January 31 Pounds of wax required for production: Candles or unit price _____ Desired ending inventory, January 31 ____ Total units available 503125 Estimated beginning inventory, January 1 -16000 Total pounds to be purchased 487125 Unit price (per lb.) 1.24 Total direct materials to be purchased in January 604035

Please assist in blanks and bold.

 Pounds of wax required for production(785000 candles x 10x1/16 pounds of waxcine) 490625 Desired ending inventory, January 31 in pounds 12500 total units needed(available) 503125 Estimated beginning inventory, January 1 16000 Total pounds to be purchased 487125 Unit price (per lb.) 1.24 Total direct materials to be purchased in January 604035

calculation:-

one pound=16 ounces ,hence wax required in pounds for producing 785000 candles=785000x 10x1/16=490625 pounds.

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