Direct Materials Purchases Budget

Pasadena Candle Inc. budgeted production of 700,000 candles for the year. Wax is required to produce a candle. Assume 14 ounces of wax is required for each candle. The estimated January 1 wax inventory is 17,000 pounds. The desired December 31 wax inventory is 12,600 pounds. If candle wax costs $1.40 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	$