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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 ..... 9,000 ................... 15,000 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 Ib. per unit ............... 1.00 Ib. 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 ..... 500Ibs. ........................ 250 Ibs................ 480 Ibs. Desired inventory, September 30 ....... 600 Ibs......................... 300 Ibs. ............... 550 Ibs. Price per pound ........................... $0.75 .......................... $0.90 .................. $1.20 Prepare September s direct materials purchases budget for Zippy s Frozen Pizza Inc.
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