Direct Materials Purchases Budget Pasadena Candle Inc. budgeted production of 735,000 candles for the year. Wax is required to produce a candle. Assume 14 ounces of wax is required for each candle. The estimated January 1 wax inventory is 18,600 pounds. The desired December 31 wax inventory is 13,400 pounds. If candle wax costs $1.60 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. Pasadena Candle Inc. Direct Materials Purchases Budget For the Year Ending December 31 Pounds of wax required for production: fill in the blank 2 fill in the blank 4 Total units available fill in the blank 5 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 $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.
Direct Materials Purchases Budget
Pasadena Candle Inc. budgeted production of 735,000 candles for the year. Wax is required to produce a candle. Assume 14 ounces of wax is required for each candle. The estimated January 1 wax inventory is 18,600 pounds. The desired December 31 wax inventory is 13,400 pounds. If candle wax costs $1.60 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.
| Pasadena Candle Inc. | |
| Direct Materials Purchases Budget | |
| For the Year Ending December 31 | |
| Pounds of wax required for production: | |
| fill in the blank 2 | |
| fill in the blank 4 | |
| Total units available | fill in the blank 5 |
| 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 | $fill in the blank 10 |
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