Question
Direct materials purchases budget Tobins Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas
Direct materials purchases budget
Tobins Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for November:
| Line Item Description | Units 12" Pizza | Units 16" Pizza |
|---|---|---|
| Budgeted production volume | 13,700 | 21,100 |
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:
| Line Item Description | 12" Pizza | 16" Pizza |
|---|---|---|
| Direct materials: | ||
| Dough | 0.90 lb. per unit | 1.50 lb. per unit |
| Tomato | 0.60 | 1.00 |
| Cheese | 0.80 | 1.30 |
In addition, Tobin's has determined the following information about each material:
| Line Item Description | Dough | Tomato | Cheese |
|---|---|---|---|
| Estimated inventory, November 1 | 620 lbs. | 160 lbs. | 340 lbs. |
| Desired inventory, November 30 | 650 lbs. | 160 lbs. | 370 lbs. |
| Price per pound | $1.20 | $2.40 | $3.10 |
Prepare November's direct materials purchases budget for Tobins Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
| Line Item Description | Dough | Tomato | Cheese | Total |
|---|---|---|---|---|
| Units required for production: | ||||
| 12" pizza | 12" pizza | 12" pizza | 12" pizza | |
| 16" pizza | 16" pizza | 16" pizza | 16" pizza | |
| Desired inventory, November 1Desired inventory, November 30Estimated inventory, November 1Estimated inventory, November 30Supervisor salariesDesired inventory, November 30 | Desired inventory, November 30 | Desired inventory, November 30 | Desired inventory, November 30 | |
| Total units available | Total units available | Total units available | Total units available | |
| Desired inventory, November 1Desired inventory, November 30Estimated inventory, November 1Estimated inventory, November 30Supervisor salariesEstimated inventory, November 1 | Estimated inventory, November 1 | Estimated inventory, November 1 | Estimated inventory, November 1 | |
| Total units to be purchased | Total units to be purchased | Total units to be purchased | Total units to be purchased | |
| Unit Price | x $Unit Price | x $Unit Price | x $Unit Price | |
| Total direct materials to be purchased | $Total direct materials to be purchased | $Total direct materials to be purchased | $Total direct materials to be purchased | $Total direct materials to be purchased |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Quality Audit Standard Requirements
Authors: Gerardus Blokdyk
1st Edition
0655170898, 978-0655170891
