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.
YOUR PIE INC. Direct Materials Purchases Budget For the Month Ending September 30
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
Answer & Explanation
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