80.2K

Verified Solution

Link Copied!

Direct materials purchases budget

Tobins Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for November:

Line Item Description	Units 12" Pizza	Units 16" Pizza
Budgeted production volume	70,000	50,000

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:

Line Item Description	12" Pizza	16" Pizza
Direct materials:
Dough	0.55 lb. per unit	0.80 lb. per unit
Tomato	0.25	0.40
Cheese	0.70	1.20

In addition, Tobins has determined the following information about each material:

Line Item Description	Dough	Tomato	Cheese
Estimated inventory, November 1	2,500 lbs.	1,000 lbs.	3,000 lbs.
Desired inventory, November 30	2,000 lbs.	1,200 lbs.	2,800 lbs.
Price per pound	$0.50	$0.60	$0.85

Prepare Novembers direct materials purchases budget for Tobins Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Line Item Description	Dough	Tomato	Cheese	Total
Units required for production:
12" pizza	12" pizza	12" pizza	12" pizza
16" pizza	16" pizza	16" pizza	16" pizza
Desired inventory, November 1Desired inventory, November 30Estimated inventory, November 1Estimated inventory, November 30Supervisor salaries	- Select -	- Select -	- Select -
Total units available	Total units available	Total units available	Total units available
Desired inventory, November 1Desired inventory, November 30Estimated inventory, November 1Estimated inventory, November 30Supervisor salaries	- Select -	- Select -	- Select -
Total units to be purchased	Total units to be purchased	Total units to be purchased	Total units to be purchased
Unit Price	x $Unit Price	x $Unit Price	x $Unit Price
Total direct materials to be purchased	$Total direct materials to be purchased	$Total direct materials to be purchased	$Total direct materials to be purchased	$Total direct materials to be purchased

Answer & Explanation Solved by verified expert

See Answer