Direct materials purchases budget Magnolia Candle Inc. budgeted production of 74,200 candles in 20Y4. Wax is required to produce a candle. Assume that eight ounces (one-half of a pound) of wax is required for each candle. The estimated January 1, 20Y4, wax inventory is 2,500 pounds. The desired December 31, 20Y4, wax inventory is 2,100 pounds. If candle wax costs $4.10 per pound, determine the direct materials purchases budget for 20Y4. BuyFind Accounting 27th Edition WARREN + 5 others Publisher: Cengage Learning, ISBN: 9781337272094 BuyFind Accounting 27th Edition WARREN + 5 others Publisher: Cengage Learning, ISBN: 9781337272094 Solutions Chapter Section Chapter 22, Problem 22.3BPE Textbook Problem Direct materials purchases budgetMagnolia Candle Inc. budgeted production of 74,200 candles in 20Y4. Wax is required to produce a candle. Assume that eight ounces (one-half of a pound) of wax is required for each candle. The estimated January 1, 20Y4, wax inventory is 2,500 pounds. The desired December 31, 20Y4, wax inventory is 2,100 pounds. If candle wax costs$4.10 per pound, determine the direct materials purchases budget for 20Y4.

Expert Solution
To determine

Budgeting is a process to prepare the financial statement by the manager to estimate the organization’s future actions. It is also helpful to satisfy the everyday activities.

To Calculate: The direct materials purchases budget for 20Y4.

Explanation of Solution

Calculate the direct materials purchases budget for 20Y4.

 M Incorporation Direct Materials Purchases Budget For the year ending December 31, 20Y4 Particulars Units Pounds required for production: Candles 37,100(1) Add: Desired ending inventory, December 31, 20Y4 2,100 Total Pounds required 39,200 Less: Estimated beginning inventory, January 1, 20Y4 (2,500) Total Pounds To Be Purchased (A) 36,700 Unit price per pound (B) \$4...

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