Soft Glow Candle Co. budgeted production of 95,000 candles in 2020. 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, 2020, wax inventory is 1400 pounds. The desired December 31, 2020, wax inventory is 1100 pounds. If candle wax costs $360 per pound, determine the direct materials purchases budget for 2020.

78,900*0.5= 39,450lbs

39,450+2400= 41,850

41,850-2000=39,850

39,850*3.20=127,520

Answer rating: 100% (QA)

Ans1 Direct material purchas... View the full answer