Soft Glow Candle Co. budgeted production of 78,900 candles in 2010. Wax is required to produce a candle. Assume 8 ounces (one half of a pound) of wax is required for each candle. The estimated January 1, 2010, wax inventory is 2,000 pounds. The desired December 31, 2010, wax inventory is 2,400 pounds. If candle wax costs $3.20 per pound, determine the direct materials purchases budget for 2010. ex - 47000 x 96 4,512,000 plus dec inventory dec 31 200,000 total 4,712,000 less inventory jan 1 240,000 unit price 4,472,000 x .12 total direcct material to be puchased 536,640