Taste of Italy Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for August 2006:

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:

In addition, Taste of Italy has determined the following information about each material:

Prepare August€™s direct materials purchases budget for Taste of Italy Frozen PizzaInc.

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Units 12" Pizza 16" Pizza Budgeted production volume 18,200 24,600 12" Pizza 16" Pizza Direct materials: Dough Tomato 1.00 lb. per u 0.50 1.50 lbs. per unit 1.50 lbs, per unit 0.80 1.10 Cheese 0.70 Dough Tomat Cheese Estimated inventory, August 1, 2006 Desired inventory, August 31, 2006 Price per pound 600 lbs. 450 lbs. 180 lbs. 240 lbs. 480 lbs. 350 lbs. $1.40 $2.20 $2.60