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Prepare ensinada purchases budgets for wax

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Reference no: EM131829297

Question - Ensnada Mfg. Co, rpoduces candles that contain four raw materials: wax, dye, scented oil and a wick. Each candle usues eight ounces of wax and one ounce of die, which Ensinada purchase for $0.15 and $0.02 per ounce, respepctively. Ensinada ends each month with enough wax to manufature 10 percent of the following months production needs; desired ending inventory for die is 15 percent of the following months production needs. Production for July is calculated at 41, 775 units.

Required: Prepare Ensinada's purchases budgets for wax and die for each month of the second quarter and the total for the second quarter of 2010.

Reference no: EM131829297

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