Magnolia Candle Inc. A budget of estimated unit production.budgeted production of 74,200 candles in 2016. Wax is required to produce a candle. Assume eight ounces (one-half of a pound) of wax is required for each candle. The estimated January 1, 2016, wax inventory is 2,500 pounds. The desired December 31, 2016, wax inventory is 2,100 pounds. Candle wax costs $4.10 per pound.

Each candle requires molding. Assume that 12 minutes are required to mold each candle. Molding labor costs $14.00 per hour.

Prepare a cost of goods sold An accounting device used to plan and control resources of operational departments and divisions.budget for Magnolia Candle Inc., using the information above. Assume the estimated inventories on January 1, 2016, for finished goods and work in process were $9,800 and $3,600, respectively. Also assume the desired inventories on December 31, 2016, for finished goods and work in process were $12,900 and $3,500, respectively. Factory overhead was budgeted at $109,600. Round your interim calculations to nearest cent, if required.

Magnolia Candle Inc.

Cost of Goods Sold Budget

For the Year Ending December 31, 2016

Finished goods Inventory, January 1, 2016 ________________________ Work in process inventory, January 1, 2016 ________________________

Direct Materials: Direct materials Inventory, January 1, 2016 ________________________ Direct materials purchases ________________________ Cost of direct materials available for use ________________________ Less Direct materials inventory, December 31, 2016 ________________________

Cost of direct materials placed in production Direct labor ________________________ Factory overhead ________________________ Total manufacturing costs ________________________

Total work in process during the period Less work in process inventory, December 31, 2016 ________________________ Cost of good manufactured ________________________ Cost of finished goods available for sale ________________________ Less finished goods inventory, December 31, 2016 ________________________ Cost of goods sold ________________________