1.Direct Materials Purchases Budget

Marshall Inc. budgeted production of 36,000 personal journals in 20Y6. Paper is required to produce a journal. Assume 74 square yards of paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 107,000 square yards. The desired December 31, 20Y6, paper inventory is 120,000 square yards.

If paper costs $0.08 per square yard, determine the direct materials purchases budget for 20Y6. If required, round your final answer to the nearest dollar. $fill in the blank 1

2.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. $fill in the blank 1