Direct Materials Purchases Budget Pasadena Candle Inc. budgeted production of 700,000 candles for the year. Wax is required to produce a candle. Assume 12 ounces of wax is required for each candle. The estimated January 1 wax inventory is 17,000 pounds. The desired December 31 wax inventory is 14,200 pounds. If candle wax costs $1.30 per pound, determine the direct materials purchases budget for the year. (One pound - 16 ounces.) Round all computed answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Snow Me How Pasadena Candle Inc. Direct Materials Purchases Budget For the Year Ending December 31 Pounds of wax required for production: Total units available Total pounds to be purchased Unit price Total direct materials to be purchased 10000000
Direct Materials Purchases Budget Pasadena Candle Inc. budgeted production of 700,000 candles for the year. Wax is required to produce a candle. Assume 12 ounces of wax is required for each candle. The estimated January 1 wax inventory is 17,000 pounds. The desired December 31 wax inventory is 14,200 pounds. If candle wax costs $1.30 per pound, determine the direct materials purchases budget for the year. (One pound - 16 ounces.) Round all computed answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Snow Me How Pasadena Candle Inc. Direct Materials Purchases Budget For the Year Ending December 31 Pounds of wax required for production: Total units available Total pounds to be purchased Unit price Total direct materials to be purchased 10000000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
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A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Direct Materials Purchases Budget
Pasadena Candle Inc. budgeted production of 700,000 candles for the year. Wax is required to produce a candle. Assume 12 ounces of wax is required for each candle.
The estimated January 1 wax inventory is 17,000 pounds. The desired December 31 wax inventory is 14,200 pounds. If candle wax costs $1.30 per pound, determine the
direct materials purchases budget for the year. (One pound - 16 ounces.) Round all computed answers to the nearest whole dollar. For those boxes in which you must
enter subtracted or negative numbers use a minus sign.
Show Me How
Pasadena Candle Inc.
Direct Materials Purchases Budget
For the Year Ending December 31
Pounds of wax required for production:
Total units available
Total pounds to be purchased
Unit price
Total direct materials to be purchased
10000000
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