1.

Direct Materials Purchases Budget

Pasadena Candle Inc. budgeted production of 725,000 candles for the January. Wax is required to produce a candle. Assume 14 ounces of wax is required for each candle. The estimated January 1 wax inventory is 17,800 pounds. The desired January 31 wax inventory is 12,600 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:
CandlesEstimated beginning inventory, January 1Estimated ending inventory, January 31Unit price	- Select -
Estimated beginning inventory, January 31Desired ending inventory, January 1Desired ending inventory, January 31Unit price	- Select -
Total units available	fill in the blank 5
CandlesEstimated beginning inventory, January 1Estimated beginning inventory, January 31Unit price	- Select -
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

2.

Direct Labor Cost Budget

Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows:

	Junior	Pro Striker
Production budget	6,600 units	21,000 units

Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:

	Forming Department	Assembly Department
Junior	0.20 hour per unit	0.50 hour per unit
Pro Striker	0.30 hour per unit	0.60 hour per unit

The direct labor rate for each department is as follows:

Forming Department	$14.00 per hour
Assembly Department	$10.00 per hour

Prepare the direct labor cost budget for July.

Ace Racket Company Direct Labor Cost Budget For the Month Ending July 31

	Forming Department	Assembly Department
Hours required for production:
Junior	fill in the blank 1	fill in the blank 2
Pro Striker	fill in the blank 3	fill in the blank 4
Total	fill in the blank 5	fill in the blank 6
Hourly rate	x$fill in the blank 7	x$fill in the blank 8
Total direct labor cost	$fill in the blank 9	$fill in the blank 10