Direct materials purchases budget

Quetzaltenango Candle Inc, budgeted production of $685,000$ candles for March. Wax is required to produce a candle. Assume $8$ ounces of wax is required for each candle. The estimated March $1$ wax inventory is $15,000$ pounds. The desired March $31$ wax inventory is $14,500$ pounds. If candle wax costs $$1\mathrm{.}20$ per pound, determine the direct materials purchases budget for March. $($One pound $=16$ ounces.$)$ For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Quetzaltenango Candle Inc.

Direct Materials Purchases Budget

For the Month Ending March $31$

Line Item Description

Amount

Pounds of wax required for production:

Candles $$

Desired ending inventory, March $31$

Total units available

Estimated beginning inventory, March $1$

Total pounds to be purchased

Unit price $($per lb$.)$

Total direct materials to be purchased in March

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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.