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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 frezen pizzas for
Direct Materials Purchases Budget Your Pie Inc. has determined from its production budget the following estimated production volumes for 12" and 16" frezen pizzas for September: Units 12" Pizza 16" Pizza Budgeted production volume 4,500 7,500 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 lb. per unit Tomato 0.30 0.45 Cheese 0.50 0.80 In addition, Your Pie Inc. has determined the following information about each material: Dough Tomato Cheese Estimated inventory, September 1 250 lbs. 125 lbs. 240 lbs. Desired inventory, September 30 300 lbs. 150 lbs. 275 lbs. Price ner nound 30.60
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