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Zippy's Frozen Pizza Inc. has determined from its A budget of estimated unit production.production budget the following estimated production volumes for 12'' and 16'' frozen
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Zippy's Frozen Pizza Inc. has determined from its A budget of estimated unit production.production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for September:
Units 12" Pizza 16" Pizza Budgeted production volume 16,200 22,300 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 1 620 lbs. 180 lbs. 350 lbs. Desired inventory, September 30 650 lbs. 170 lbs. 380 lbs. Price per pound $1.30 $2.50 $3.30 Prepare September's direct materials purchases budget for Zippy's Frozen Pizza Inc.
ZIPPYS FROZEN PIZZA INC. Direct Materials Purchases Budget For the Month Ending September 30 Dough Tomato Cheese Total Units required for production: 12" pizza 16" pizza Plus desired inventory, September 30 - Less desired inventory, September 30
- Plus desired inventory, September 1
- Plus desired inventory, September 30
Total Less estimated inventory, September 1 - Less estimated inventory, September 1
- Less estimated inventory, September 30
- Plus estimated inventory, September 1
Total units to be purchased Unit price $ $ $ Total direct materials to be purchased $ $ $ $
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