Direct Materials Purchases Budget Pasadena Candle Inc. budgeted production of 735,000 candles for the January. Wax is required to produce a candle. Assume 11 ounces of wax is required for each candle. The estimated January 1 wax inventory is 16,300 pounds. The desired January 31 wax inventory is 13,900 pounds. If candle wax costs $1.60 per pound, determine the direct materials purchases budget for January (One pound - 16 ounces) Round all computed answers to the nearest whole number. 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 Month Ending January 31 Pounds of wax required for production: Candles Desired ending inventory, January 31 13.900 -16.00 Total units available Estimated beginning inventory, January 1 Total pounds to be purchased Unit price Total direct materials to be purchased in January 1.6 Faback Production and Direct Labor Cost Budgets Levi Strauss & Co. manufactures slacks and jeans under a variety of brand names, such as Dockers and 501 Jeans Slacks and jeans are assembled by a variety of different sewing operations. Assume that the sales budget for Dockers and 501 Jeans shows estimated sales of 23,600 and 53,100 pairs, respectively, for May. The finished goods inventory is assumed as follows: Dockers 501 Jeans May 1 estimated inventory 670 1,660 May 31 desired inventory 420 1,860 Assume the following direct labor data per 10 pairs of Dockers and 501 Jeans for four different sewing operations: Direct Labor per 10 Pairs Dockers 501 Jeans Inseam 18 minutes 9 minutes Outerseam 20 14 Pockets 6 9 Zipper 12 6 Total 56 minutes 38 minutes a. Prepare a production budget for May. Prepare the budget in two columns: Dockers and 501 Jeans. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Levi Strauss & Co. Production Budget a. Prepare a production budget for May. Prepare the budget in two columns: Dockers and 501 Jeans. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Levi Strauss & Co. Production Budget For the Month Ending May 31 (assumed data) Dockers 501 Jeans Expected units to be sold 23.600 53,100 May 31 desired inventory 420 Total units available 24.030 54.960 May 1 estimated Inventory -6707 1.860 1.660 Total units to be produced 23.350 Check on Remember to take into account expected units to be sold desired units in ending inventory and estimated units in beginning inventory when calculating total units to be produced b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $13 wage per hour for the inseam and outerseam sewing operations and a $15 wage per hour for the pocket and zipper sewing operations. Prepare the direct labor cost budget in four columns: inseam, outersem, pockets, and zipper. Levi Strauss & Co. Check My Won Remember to take into account expected units to be sold, desired unitsin ending inventory and estimated units in beginning inventory when calculating total units to be produced b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $13 wage per hour for the inseam and outerseam sewing operations and a $15 wage per hour for the pocket and zipper sewing operations. Prepare the direct labor cost budget in four columns: inseam, outerseam, pockets, and zipper Levi Strauss & Co. Direct Labor Cost Budget For the Month Ending May 31 (assumed data) Inseam Outerseam Pockets Zipper Total Dockers 501 Jeans Total minutes Total direct labor hours 1.500 2,022 1,033 1.000 Direct labor rate X 13 13 15 IS Total direct labor cost 19.500 26,286 15,495 15,000 76,281 Feedback Check My Wor Remember to take into account hours required for production, nurly rate and hours per unit when calculating direct labor cost