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Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883

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Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883
Textbook Problem

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:

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:

In addition. Zippy's has determined the following information about each material:

Prepare September's direct materials purchases budget for Zippy's Frozen Pizza Inc.

To determine

Concept Introduction:

Direct materials purchases budget: it is calculated to get estimated amount which is used to produce goods.

To Prepare:

Make a Direct materials purchases budget.

Explanation
    12'' pizza
    Particularsdoughtomatocheese
    total material usage540027004500
    add: closing stock600300550
    less: opening stock500250480
    material to purchase550027504570

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