1) Pasadena Candle Inc. budgeted production of of 785,000 candles for the year. Each candle requires molding. Assume that six minutes are required to mold each candle. If molding labor costs $18 per hour, determine the direct labor cost budget for the year. Wax is required to produce a candle. Assume 487,125 pounds of material will be purchased during the year. If candle wax costs $1.24 per pound, determine the direct materials purchases for the year.

Prepare a cost of goods sold budget Pasadena Candle Inc. using the information above. Assume the estimated inventories on January 1 for finished goods and work in process were $200,000 and $41,250, respectively and direct materials wax inventory of 16,000 pounds. Also assume the desired inventories on December 31 for finished goods and work in process were $120,000 and $28,500, respectively and direct matierals wax inventory of 12,500 pounds. Factory overhead was budgeted at $300,000. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Pasadena Candle Inc.
Cost of Goods Sold Budget
For the Year Ending December 31
			$
		$
Direct materials:
	$
	$
Cost of direct materials placed in production	$
Total work in process during period		$
			$
			$

2) Pasadena Candle Inc. budgeted production of 775,000 candles for the year. Wax is required to produce a candle. Assume 13 ounces of wax is required for each candle. The estimated January 1 wax inventory is 18,100 pounds. The desired December 31 wax inventory is 14,200 pounds. If candle wax costs $1.30 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:
Total units available
Total pounds to be purchased
Unit price	$
Total direct materials to be purchased	$

3) Pasadena Candle Inc. budgeted production of 51,000 candles for the year. Each candle requires molding. Assume that two minutes are required to mold each candle. If molding labor costs $13.5 per hour, determine the direct labor cost budget for the year.

Round hourly rate to nearest cent, if required.

Pasadena Candle Inc. Direct Labor Cost Budget For the Year Ending December 31
Hours required for assembly:
Candles				min.
Convert minutes to hours				min.
Molding hours				hrs.
Hourly rate
Total direct labor cost		$