Question
Tobins Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for November: Units 12
Tobins Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for November:
Units | ||||
12" Pizza | 16" Pizza | |||
Budgeted production volume | 13,400 | 23,400 |
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 | 0.90 | lb. per unit | 1.50 | lbs. per unit | |
Tomato | 0.60 | 1.00 | |||
Cheese | 0.80 | 1.30 |
In addition, Tobin's has determined the following information about each material:
Dough | Tomato | Cheese | ||||
Estimated inventory, November 1 | 630 | lbs. | 190 | lbs. | 290 | lbs. |
Desired inventory, November 30 | 660 | lbs. | 180 | lbs. | 320 | lbs. |
Price per pound | $1.20 | $2.30 | $3.00 |
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.
Tobins Frozen Pizza Inc. | ||||
Direct Materials Purchases Budget | ||||
For the Month Ending November 30 | ||||
Direct Materials | Direct Materials | Direct Materials | ||
Dough | Tomato | Cheese | Total | |
Units required for production: | ||||
12" pizza | ||||
16" pizza | ||||
Desired inventory, November 30 | ||||
Total units available | ||||
Estimated inventory, November 1 | ||||
Total units to be purchased | ||||
Unit Price | x $ | x $ | x $ | |
Total direct materials to be purchased | $ |
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