Answer:
Purchases Quantity = 441075 pounds
Purchases Value = $926257.5
Step-by-step explanation:
To calculate the quantity and value of the purchases of direct material for the month of January, we first need to determine the quantity of direct material needed for production in January and adjust it with the opening inventory of direct material and the desired closing inventory.
To produce 715000 candles, the wax needed (in pounds) = 715000 * 10/16
To produce 715000 candles, the wax needed (in pounds) = 446875 pounds
The purchases for wax in pounds for January should be,
Consumption = Opening Inventory + Purchases - Closing Inventory
446875 = 18600 + Purchases - 12800
446875 + 12800 - 18600 = Purchases
Purchases = 441075 pounds
The value of Purchases will be = 441075 * 2.1 = $926257.5