Quetzaltenango Candle Inc. budgeted production of 780,000 candles for March. Wax is required to produce a candle. Assume 10 ounces of wax is required for each candle. The estimated March 1 wax inventory is 17,800 pounds. The desired March 31 wax inventory is 14,400 pounds. If candle wax costs $1.80 per pound, determine the direct materials 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 subtracted or 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 7,800,000 X Desired ending inventory, March 31 14,400 Total units available 7,814,400 X Estimated beginning inventory, March 1 Total pounds to be purchased -17,800 7,796,600 X Unit price (per lb.) x $ 1.80 Total direct materials to be purchased in March 14,033,880 ×
Quetzaltenango Candle Inc. budgeted production of 780,000 candles for March. Wax is required to produce a candle. Assume 10 ounces of wax is required for each candle. The estimated March 1 wax inventory is 17,800 pounds. The desired March 31 wax inventory is 14,400 pounds. If candle wax costs $1.80 per pound, determine the direct materials 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 subtracted or 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 7,800,000 X Desired ending inventory, March 31 14,400 Total units available 7,814,400 X Estimated beginning inventory, March 1 Total pounds to be purchased -17,800 7,796,600 X Unit price (per lb.) x $ 1.80 Total direct materials to be purchased in March 14,033,880 ×
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Quetzaltenango Candle Inc. budgeted production of 780,000 candles for March. Wax is required to produce a candle. Assume 10
ounces of wax is required for each candle. The estimated March 1 wax inventory is 17,800 pounds. The desired March 31 wax
inventory is 14,400 pounds. If candle wax costs $1.80 per pound, determine the direct materials 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
subtracted or 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
7,800,000 X
Desired ending inventory, March 31
14,400
Total units available
7,814,400 X
Estimated beginning inventory, March 1
Total pounds to be purchased
-17,800
7,796,600 X
Unit price (per lb.)
x $
1.80
Total direct materials to be purchased in March
14,033,880 ×
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