Zippy's Frozen Pizza Inc. has determined from its A budget of estimated unit production.production budget...
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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
23,200
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
520
lbs.
180
lbs.
270
lbs.
Desired inventory, September 30
550
lbs.
170
lbs.
300
lbs.
Price per pound
$1.20
$2.80
$3.40
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
Total
Less estimated inventory, September 1
Total units to be purchased
Unit price
Total direct materials to be purchased
Answer & Explanation
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