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
Cost of finished goods available for saleDirect laborFactory overheadFinished goods inventory, January 1Finished goods inventory, December 31			$- Select -
Cost of finished goods available for saleCost of goods manufacturedFactory overheadWork in process inventory, December 31Work in process inventory, January 1		$- Select -
Direct materials:
Cost of goods manufacturedDirect materials inventory, January 1Factory overheadFinished goods inventory, December 31Total work in process during periodWork in process inventory, January 1	$- Select -
Cost of goods soldDirect laborDirect materials purchasesFinished goods inventory, December 31Work in process inventory, December 31	- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal manufacturing costs	$- Select -
Direct laborDirect materials inventory, December 31Factory overheadFinished goods inventory, January 1Total work in process during period	- Select -
Cost of direct materials placed in production	$fill in the blank 13
Cost of goods soldDirect laborDirect materials purchasesFinished goods inventory, January 1Work in process inventory, January 1Work in process inventory, December 31	- Select -
Cost of goods manaufacturedDirect materials inventory, December 31Direct materials inventory, January 1Factory overheadWork in process inventory, December 31	- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal manufacturing costs		- Select -
Total work in process during period		$fill in the blank 20
Direct laborDirect materials inventory, December 31Factory overheadFinished goods inventory, January 1Work in process inventory, December 31		- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal manufacturing costs			- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal manufacturing costs			$- Select -
Direct laborDirect materials inventory, December 31Factory overheadFinished goods inventory, December 31Work in process inventory, December 31			- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal manufacturing costs			$- Select -