Question

Direct Materials Purchases Budget Tobin's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12" and 16" frozen pizzas for November: Units 12" Pizza 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: 12" Pizza 16" Pizza Direct materials: Dough 0.55 lb. per unit 0.80 lb. per unit Tomato0 .25 0.40 Cheese In addition, Tobin's has determined the following information about each material: Dough Tomato Cheese Estimated inventory, November 1 2 ,500 lbs. 1,000 lbs. 3,000 lbs Desired inventory, November 30 2,00 2,000 lbs. 1,200 lbs. 2,800 lbs. Price per pound $0.50 $0.60 $0.85 let the 0.70 1.20 Prepare November's direct materials purchases budget for Tobin's Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Answer 1

Direct material purchase budget
	Dough	Tomato	Cheese	Total
Units required
12'	38,500.00	17,500.00	49,000.00
16'	40,000.00	20,000.00	60,000.00
Desired Inventory, Nov 30	2,000.00	1,200.00	2,800.00
Total units available	80,500.00	38,700.00	111,800.00
Estimated Inventory, Nov 1	2,500.00	1,000.00	3,000.00
Total units to be purchased	78,000.00	37,700.00	108,800.00
Unit Price	0.50	0.60	0.85
Cost	39,000.00	22,620.00	92,480.00	154,100.00

B E 1 Direct material purchase budget 2 Dough Tomato Cheese Total 3 Units required 4 12 5 16' 6 Desired Inventory, Nov 30 7 Total units available 8 Estimated Inventory, Nov 1 9 Total units to be purchased 10 Unit Price 11 Cost = 70000*0.55 =70000*0.25 =70000*0.7 =50000*0.8 =50000*0.4 =50000* 1.2 2000 1200 2800 =SUM(B4:B6) =SUM(C4:C6) =SUM(D4:06) 2500 1000 3000 =B7-B8 =C7-C8 =D7-D8 0.5 0.6 0.85 =B9*B10 =C9*010 =D9*D10 =SUM(B11:011)