Question: Ensinada Mfg Co from Exercise 18 produces candles that contain

Ensinada Mfg. Co., from Exercise 18, produces candles that contain four raw materials: wax, dye, scented oil, and a wick. Each candle uses eight ounces of wax and one ounce of dye, which Ensinada purchases for $0.15 and $0.02 per ounce, respectively. Ensinada ends each month with enough wax to manufacture 10 percent of the following month’s production needs; desired ending inventory for dye is 15 percent of the following month’s production needs. Production for July is calculated at 41,775 units.
Prepare Ensinada’s purchases budgets for wax and dye for each month of the second quarter and the total for the second quarter of 2010.

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