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 16" Pizza Budgeted production volume 14,900 25,000 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: 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 1 560 lbs. 200 lbs. 330 lbs. Desired inventory, September 30 590 lbs. 190 lbs. 360 lbs. Price per pound $1.30 $2.20 $3.20 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 Total Total units to be purchased Unit price $ $ $ Total direct materials to be purchased $ $ $ $ Check My Work

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 9E

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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	16" Pizza
Budgeted production volume	14,900		25,000

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:

	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	560	lbs.	200	lbs.	330	lbs.
Desired inventory, September 30	590	lbs.	190	lbs.	360	lbs.
Price per pound	$1.30	$2.20	$3.20

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

Total

Total units to be purchased
Unit price	$	$	$
Total direct materials to be purchased	$	$	$	$

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