eBook Show Me How Cost of goods sold budget Show Me How Pasadena Candle Inc. budgeted production of 785,000 candles for the year. 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 the year. Wax is required to produce a candle. Assume 487,125 pounds of material will be purchased during the year. If candle wax costs $1.24 per pound, determine the direct materials purchases for the year. 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 December 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 Year Ending December 31 Finished goods inventory, January 1 200,000 Work in process inventory, January 1 41,250 Direct materials: Direct materials inventory, January 1 16,000 X Direct materials purchases 604,035 Cost of direct materials available for use 620,035 X Direct materials inventory, December 31 12,500 X Cost of direct materials placed in production 607,535 X Direct labor V 1,413,000 Factory overhead 300,000 Total manufacturing costs 2,320,535 X Total work in process during period 2,361,785 X Work in process inventory, December 31 28,500 X Cost of goods manufactured V 2,333,285 X Cost of finished goods available for sale 2,533,285 X Finished goods inventory, December 31 120,000 X Cost of goods sold 2,413,285 X Feedback Check My Work Previous Next All work saved. Save and Exit Submit Assignment for Grading