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Direct Materials Purchases Budget Zippy'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 Zippy's Frozen Pizza 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 13,500 20,800 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, Zippy's has determined the following information about each material: Dough Tomato Cheese Estimated Inventory, September 1 610 lbs. 240 lbs. 290 lbs Desired inventory, September 30 640 lbs. 230 lbs. 320 lbs. Price per pound $1.00 $2.10 $3.00 Prepare September's direct materials purchases budget for Zippy's Frozen Pizza Inc. ZIPPY'S FROZEN PIZZA INC Prepare September's direct materials purchases budget for Zippy's Frozen Pizza Inc. ZIPPY'S FROZEN PIZZA INC. Direct Materials Purchases Budget For the Month Ending September 30 Dough Tomato Cheese Total Units required for production: 12" pizza 8,100 4,050 6,750 20,800 9,360 16,640 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 purchased
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