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direct materials purchases budget
Direct Materials Purchases Budget Tobins Frozen P aine has determined from its prediction to the following estimated product
In addition, Tobins has determined the following information about each material: Dough Tomate Cheese Estimated inventory, N
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Answer #1

Direct material purchase budget

For the month ending November 30

Direct material Dough Direct material Tomato Direct material Cheese Total
Units required for production
12" Pizza 38500 17500 49000
16" Pizza 40000 20000 60000
Desired ending inventory 2000 1200 2800
Total units available 80500 38700 111800
Less: Beginning inventory -2500 -1000 -3000
Total units to be purchased 78000 37700 108800
Unit price 0.50 0.60 0.85
Total direct materials to be purchased 39000 22620 92480 154100
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