Quetzaltenango Candle Inc. budgeted production of 685,000 candles for March. Each candle requires molding. Assume that 6 minutes are required to mold each candle. It molding labor costs $15 per hour, determine the direct labor cost budget for March. Wax is required to produce a candle. Assume 342,000 pounds of material will be purchased during March. The candle wax costs $1.20 per pound. Prepare a cost of goods sold budget for Quetzaltenango Candle Inc. using the information above. Assume the estimated inventories on March 1 for finished goods and work in process were $300,000 and $41,250, respectively and direct materials wax inventory of 15,000 pounds. Also assume the desired inventories on March 31 for finished goods and work in process were $200,000 and $28,500, respectively and direct materials wax inventory of 14,500 pounds. Factory overhead was budgeted at $400,000. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Quetzaltenango Candle Inc. Cost of Goods Sold Budget For the Month Ending March 31 Line Item Description Direct materials: Cost of direct materials placed in production Total work in process during period Amount Amount Amount

Quetzaltenango Candle Inc. budgeted production of 685,000 candles for March. Each candle requires molding. Assume that 6 minutes are required to mold each candle. It molding labor costs $15 per hour, determine the direct labor cost budget for March. Wax is required to produce a candle. Assume 342,000 pounds of material will be purchased during March. The candle wax costs $1.20 per pound. Prepare a cost of goods sold budget for Quetzaltenango Candle Inc. using the information above. Assume the estimated inventories on March 1 for finished goods and work in process were $300,000 and $41,250, respectively and direct materials wax inventory of 15,000 pounds. Also assume the desired inventories on March 31 for finished goods and work in process were $200,000 and $28,500, respectively and direct materials wax inventory of 14,500 pounds. Factory overhead was budgeted at $400,000. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Quetzaltenango Candle Inc. Cost of Goods Sold Budget For the Month Ending March 31 Line Item Description Direct materials: Cost of direct materials placed in production Total work in process during period Amount Amount Amount

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 11E

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