21-6

Magnolia Candle Inc. budgeted production of 74, 200 candles in 2016. Each candle requires molding. Assume that 12 minutes are requires to mold each candle. If molding labor costs $14.00 per hour, determine the direct labor cost budget for 2016. Prepare a cost of goods sold budget for MyLife Chronicles Inc. using the information in Practice Exercises 21-3A and 21-4A. Assume the estimated inventories on January 1, 2016, for finished goods and work in process were $25,000 and $19,000, respectively. Also assume the desired inventories on December 31, 2016, for finished goods and work in process were $31, 500 and $16, 700, respectively. Factory overhead was budgeted at $197, 100. Prepare a cost of goods sold budget for Magnolia Candle Inc. using the information in Practice Exercises 21-3B and 21-4B. Assume the estimated inventories on January 1, 2016, for finished goods and work in process were $9, 800 and $3, 600, respectively. Also assume the desired inventories on December 31, 2016, for finished goods and work in process were $12, 900 and $3, 500, respectively. Factory overhead was budgeted at $109, 600. MyLife Chronicles Inc. collects 30% of its sales on account in the month of the sale and 70% in the month following the sale, lf sales on account are budgeted to be $170,000 for June and $200,000 for July, what are the budgeted cash receipts from sales on account for July? Magnolia Candle Inc pays 10% of its purchases on account in the month of the purchase and 90% in the month following the purchase. If purchases are budgeted to be $11, 900 for March and $12, 700 for April, what are the budgeted cash payments for purchases on account for April? At the beginning of the 2016 school year, Katherine Malloy decided to prepare a cash budget for the month of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget