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Direct materials purchases budget Tobin's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12 and 16 frozen pizzas
Direct materials purchases budget Tobin's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12" and 16" frozen pizzas for November: Units 12" Pizza Units 16" Pizza Budgeted production volume 90,000 70,000 There are three direct materials used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows: Direct materials: Dough Tomato Cheese 12" Pizza 0.55 lb. per unit 0.25 0.70 16" Pizza 0.80 lb. per unit 0.40 1.20 In addition, Tobin's has determined the following information about each material: Tomato Cheese Dough 2,200 lbs. Estimated inventory, November 1 1,100 lbs. Desired inventory, November 30 1,900 lbs. 1,100 lbs. Price per pound $0.70 $0.80 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answ in the question below. 3,100 lbs. 3,000 lbs. $1.05
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