Question

# Direct Materials Purchases Budget Pasadena Candle Inc. budgeted production of 735,000 candles for the January. Wax...

Direct Materials Purchases Budget Pasadena Candle Inc. budgeted production of 735,000 candles for the January. Wax is required to produce a candle. Assume 11 ounces of wax is required for each candle. The estimated January 1 wax inventory is 18,700 pounds. The desired January 31 wax inventory is 12,500 pounds. If candle wax costs \$1.60 per pound, determine the direct materials purchases budget for January. (One pound = 16 ounces.) Round all computed answers to the nearest whole number. 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 Desired ending inventory, January 31 Total units available Estimated beginning inventory, January 1 Total pounds to be purchased Unit price \$ Total direct materials to be purchased in January \$

 DIRECT MATERIAL PURCHASE BUDGET FOR THE MONTH ENDING JANUARY 31 Budgeted production in candles 735000 Pounds of wax required for candle .6875 Total pounds required for production (735000*.6875) 505313 Add:Desired ending inventory 12500 Total units available 517813 less:Beginning inventory -18700 Raw material (wax) needs to be purchased 499113 cost per pound 1.6 Total cost of direct material purchased (499113*1.6) 798581

**1 pound = 16 ounces or 1Ounce = 1/16

so Pounds of wax required per candle = 11*1/16 =

#### Earn Coins

Coins can be redeemed for fabulous gifts.