Direct materials purchases budget Quetzaltenango Candle Inc. budgeted production of 725,000 candles for March. Wax is required to produce a candle. Assume 15 ounces of wax is required for each cand. estimated March 1 wax inventory is 16,500 pounds. The desired March 31 wax inventory is 12,700 pounds. If candle wax costs $1.20 per pound, determine the direct ma purchases budget for March. (One pound = 16 ounces.) Round all computed answers to the nearest whole number. For those boxes in which you must enter subtr negative numbers use a minus sign. Quetzaltenango Candle Inc. Direct Materials Purchases Budget For the Month Ending March 31 Line Item Description Amount Pounds of wax required for production: Candles 725,000 X Desired ending inventory, March 31 ✓ 12,700 Total units available 712,300 X Estimated beginning inventory, March 1 16,500 X Total pounds to be purchased 754,200 X Unit price (per lb.) 1.2 ✓ Total direct materials to be purchased in March 905,040 X
Direct materials purchases budget Quetzaltenango Candle Inc. budgeted production of 725,000 candles for March. Wax is required to produce a candle. Assume 15 ounces of wax is required for each cand. estimated March 1 wax inventory is 16,500 pounds. The desired March 31 wax inventory is 12,700 pounds. If candle wax costs $1.20 per pound, determine the direct ma purchases budget for March. (One pound = 16 ounces.) Round all computed answers to the nearest whole number. For those boxes in which you must enter subtr negative numbers use a minus sign. Quetzaltenango Candle Inc. Direct Materials Purchases Budget For the Month Ending March 31 Line Item Description Amount Pounds of wax required for production: Candles 725,000 X Desired ending inventory, March 31 ✓ 12,700 Total units available 712,300 X Estimated beginning inventory, March 1 16,500 X Total pounds to be purchased 754,200 X Unit price (per lb.) 1.2 ✓ Total direct materials to be purchased in March 905,040 X
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 3BE: Pasadena Candle Inc. budgeted production of 785,000 candles for January. Wax is required to produce...
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