Cost of goods sold budget Pasadena Candle Inc. budgeted production of 785,000 candles for January. 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 January. Wax is required to produce a candle. Assume 487,125 pounds of material will be purchased during January. The candle wax costs $1.24 per pound. Prepare a cost of goods sold budget for 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 January 31 for finished goods and work in process were $120,000 and $28,500, respectively and direct materials 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 Month Ending January 31 Finished goods inventory, January 1 $ 200,000 Work in process inventory, January 1 41,250 Direct materials: Direct materials Inventory, January 1 Direct materials purchases 19,840 604,035 Cost of direct materials available for use 623,875 Direct materials inventory, January 31 15,500 X 608,375 Cost of direct materials placed in production Direct labor 1,413,000 HU Factory overhead 300,000 Total manufacturing costs 2,321,375 s 2,362,625 Total work in process during period Work in process inventory, January 31 = 28,500 X Cost of goods manufactured 234,125 X Cost of finished goods available for sale 2,534,125 Finished goods inventory, January 31 120,000 X Cost of goods sold $ 2,414,125