Question

1. obin’s Frozen Pizza Inc. has determined from its A budget of estimated unit production.production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for November:

   	Units
   	12" Pizza		16" Pizza
   Budgeted production volume	71,000		51,000

   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	lbs. per unit
   	Tomato	0.25		0.40
   	Cheese	0.70		1.20

   In addition, Tobin’s has determined the following information about each material:

   	Dough		Tomato		Cheese
   Estimated inventory, November 1	2,400	lbs.	900	lbs.	3,100	lbs.
   Desired inventory, November 30	1,900	lbs.	1,400	lbs.	2,500	lbs.
   Price per pound	$0.70		$0.80		$1.05

   This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.

   Open spreadsheet

   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. Round your final answers to the nearest dollar.

   Tobin’s Frozen Pizza Inc.
   Direct Materials Purchases Budget
   For the Month Ending November 30
   	Dough		Tomato		Cheese		Total
   Units required for production:
   12" pizza
   16" pizza
   Desired inventory, November 1 Desired inventory, November 30 Estimated inventory, November 1 Estimated inventory, November 30 Supervisor salaries
   Total units available
   Desired inventory, November 1 Desired inventory, November 30 Estimated inventory, November 1 Estimated inventory, November 30 Supervisor salaries
   Total units to be purchased
   Unit price	x	$	x	$	x	$
   Total direct materials to be purchased		$		$		$		$

   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.

   Tobin’s Frozen Pizza Inc.
   Direct Materials Purchases Budget
   For the Month Ending November 30
   	Dough		Tomato		Cheese		Total
   Units required for production:
   12" pizza
   16" pizza
   Total units available
   Total units to be purchased
   Unit price	x	$	x	$	x	$
   Total direct materials to be purchased		$		$		$		$

   Dough required for a 12" pizza = 71,000 units × 0.55 lb. per unit = 39,050 lbs.

   Tomato required for a 12" pizza = 71,000 units × 0.25 lb. per unit = 17,750 lbs.

   Cheese required for a 12" pizza = 71,000 units × 0.70 lb. per unit = 49,700 lbs.

   Dough required for a 16" pizza = 51,000 units × 0.80 lbs. per unit = 40,800 lbs.

   Tomato required for a 16" pizza = 51,000 units × 0.40 lbs. per unit = 20,400 lbs.

   Cheese required for a 16" pizza = 51,000 units × 1.20 lbs. per unit = 61,200 lbs.

   Tobin’s Frozen Pizza Inc.
   Direct Materials Purchases Budget
   For the Month Ending November 30
   	Dough		Tomato		Cheese		Total
   Units required for production:
   12" pizza		39,050		17,750		49,700
   16" pizza		40,800		20,400		61,200
   Desired inventory, November 30		1,900		1,400		2,500
   Total units available		81,750		39,550		113,400
   Estimated inventory, November 1		(2,400)		(900)		(3,100)
   Total units to be purchased		79,350		38,650		110,300
   Unit price	x	$0.70	x	$0.80	x	$1.05
   Total direct materials to be purchased		$55,545		$30,920		$115,815		$202,280

Answer 1

Answer-

Tobin's Frozen Pizza Inc.
Direct Materials Purchase Budget
For the month ending November 30
Particulars	Dough	Tomato	Cheese	Total
Units required for production:
12" pizza	71000 units*0.55 lb per unit =39050 lbs	71000 units*0.25 lb per unit =17750 lbs	71000 units*0.70 lb per unit =49700 lbs	106500
16" pizza	51000 units*0.80 lb per unit =40800 lbs	51000 units*0.40 lb per unit =20400 lbs	51000 units*1.20 lb per unit =61200 lbs	122400
Add:-Closing inventory	1900	1400	2500	5800
Less:- Beginning Inventory	2400	900	3100	6400
Total units to be purchased (a)	79350	38650	110300	228300
Unit price (b)	$0.70	$0.80	$1.05
Total direct materials to be purchased (c=a*b) $	55545	30920	115815	202280