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Direct Materials Purchases Budget Your Pie Inc. has determined from its producticr budget the following estimated production volumes for 12 and 16 frozen pizzas for
Direct Materials Purchases Budget Your Pie Inc. has determined from its producticr budget the following estimated production volumes for 12" and 16" frozen pizzas for September: Units 12" Pizza 16" Pizza Budgeted production volume 12,?00 22,200 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 0.30 In addition, Zippy's has determined the following information about each material: Dough Tomato Cheese Estimated inventory, September 1 600 lbs. 180 lbs. 300 lbs. Desired inventory, September 30 630 lbs. l?0 lbs. 330 lbs. Price per pound $1.40 $2.50 $3.10 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: Dough Tomato Cheese Total Units required for production: 12" pizza 16" pizza Plus desired inventory, September 30 Total Less estimated inventory, September 1 Total units to be purchased Unit price Total direct materials to be purchasedDirect Materials Purchases Budget Soda Bottling Enterprises is the largest bottler in Western Europe. The company purchases Brand 1 and Brand 2 concentrate from The Soda Company, dilutes and mixes the concentrate with carbonated water, and then fills the blended beverage into cans or plastic two-liter bottles. Assume that the estimated production for Brand 1 and Brand 2 two-liter bottles at the Wakefield, UK, bottling plant are as follows for the month of October: Brand 1 129,000 two-liter bottles Brand 2 98,000 two-liter bottles In addition, assume that the concentrate costs $74 per pound for both Brand 1 and Brand 2. The concentrate is used at a rate of 0.15 pound per 100 liters of carbonated water in blending Brand 1 and at a rate of 0.10 pound per 100 liters of carbonated water in blending Brand 2. Assume that two-liter bottles cost $0.08 per bottle and carbonated water costs $0.06 per liter. Prepare a direct materials purchases budget for October, assuming no changes between beginning and ending inventories for all three materials. Enter all amounts as positive numbers. Soda Bottling Enterprises - Wakefield Plant Direct Materials Purchases Budget For the Month Ending October 31 Concentrate 2-Liter Bottles Carbonated Water Materials required for production: Brand 1 Ibs. btls. Itrs. Brand 2 Total materials Ibs. btls. Itrs. Direct materials unit price Total direct materials to be purchased
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