Direct Materials Purchases Budget Pasadena Candle Inc. budgeted production of 785,000 candles for the year. Wax is required to produce a candle. Assume 10 ounces of wax is required for each candle. The estimated January 1 wax inventory is 16,000 pounds. The desired December 31 wax inventory is 12,500 pounds. If candle wax costs $1.24 per pound, prepare the direct materials purchases budget for the year. (One pound = 16 ounces.) 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: Candles 490,625 Desired ending inventory, December 31 12,500 Total units available 503,125 Estimated beginning inventory, January 1 -16,000 Total pounds to be purchased 487,125 Unit price 1.24 Total direct materials to be purchased 603,075 X Feedback Check My Work Remember to take into account materials required for production, desired ending materials inventory and estimated beginning materials inventory when calculating direct materials to be purchased. Learning Objective 4