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Direct Materials Purchases Budget Your Pie Inc. has determined from its production budget the following estimated production volumes for 12 and 16 frozen pizzas
Direct Materials Purchases Budget Your Pie Inc. has determined from its production budget the following estimated production volumes for 12" and 16" frozen pizzas for September: Units 12" Pizza 16" Pizza Budgeted production volume 22,800 12,900 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: 12" Pizza 16" Pizza Direct materials: Dough 0.60 lb. per unit 1.00 per unit Tomato 0.30 0.45 Cheese 0.50 0.80 In addition, Zippy's has determined the following information about each material: Dough Tomato Cheese Estimated inventory, September 1 570 lbs. 160 lbs 360 lbs. Desired inventory, September 30 600 lbs. 160 lbs. 390bs Price per pound $1.00 $2.10 $3.00 Prepare September's direct materials purchases budget for Your Pie Inc. YOUR PIE INC. Direct Materials Purchases Budget For the Month Ending September 30 Direct Materials: Units required for production: 12" pizza 16" pizza Total Total units to be purchased Unit price Total direct materials to be purchased Dough Tomato Cheese Total
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