Pasadena Candle Inc. budgeted production of 750,000 candles for the 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 16,600 pounds. The desired January 31 wax inventory is 12,700 pounds. If candle wax costs $1.90 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 fill in the blank 2 Desired ending inventory, January 31 fill in the blank 4 Total units available fill in the blank 5 Estimated beginning inventory, January 1 fill in the blank 7 Total pounds to be purchased fill in the blank 8 Unit price $fill in the blank 9 Total direct materials to be purchased in January $fill in the blank 10
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.
Sales Budget and Selling
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.
3.-Pasadena Candle Inc. budgeted production of 750,000 candles for the 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 16,600 pounds. The desired January 31 wax inventory is 12,700 pounds. If candle wax costs $1.90 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.
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Pasadena Candle Inc. Direct Materials Purchases Budget For the Month Ending January 31 Pounds of wax required for production: Candles fill in the blank 2 Desired ending inventory, January 31 fill in the blank 4 Total units available fill in the blank 5 Estimated beginning inventory, January 1 fill in the blank 7 Total pounds to be purchased fill in the blank 8 Unit price $fill in the blank 9 Total direct materials to be purchased in January $fill in the blank 10
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