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Direct Materials Purchases Budget Zippy's Frozen Pizza Inc. has determined from its production budget the...

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Accounting

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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 for September: Units 12" Pizza 9,000 16" Pizza 15,000 Budgeted production volume 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 1 500 lbs. 250 lbs. 480 lbs. Desired inventory, September 30 600 lbs. 300 lbs. 550 lbs. Price per pound $0.75 $0.90 $1.20 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 16" pizza Plus desired inventory, September 30V Total DD00000 Less estimated inventory, September 1, Total units to be purchased Unit price Total direct materials to be purchased

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