Direct Materials Purchases Budget Your Pie Inc. has determined from its production budget the following...
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Accounting
Direct Materials Purchases Budget
Your Pie 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 | 14,300 | 26,400 |
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 | 0.60 | 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 | 570 | lbs. | 240 | lbs. | 360 | lbs. |
Desired inventory, September 30 | 600 | lbs. | 230 | lbs. | 390 | lbs. |
Price per pound | $1.40 | $2.40 | $3.10 |
Prepare September's direct materials purchases budget for Your Pie Inc.
Direct Materials: | Dough | Tomato | Cheese | Total |
Units required for production: | ||||
12" pizza | fill in the blank | fill in the blank | fill in the blank | |
16" pizza | fill in the blank | fill in the blank | fill in the blank | |
Less desired inventory, September 30 | Plus desired inventory, September 1 | Plus desired inventory, September 30 | - Select - | - Select - | - Select - | |
Total | fill in the blank | fill in the blank | fill in the blank | |
Less estimated inventory, September 1 | Less estimated inventory, September 30 | Plus estimated inventory, September 1 | - Select - | - Select - | - Select - | |
Total units to be purchased | fill in the blank | fill in the blank | fill in the blank | |
Unit price | $fill in the blank | $fill in the blank | $fill in the blank | |
Total direct materials to be purchased | $fill in the blank | $fill in the blank | $fill in the blank | $fill in the blank |
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