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 79,000 59,000 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 2,700 lbs. 1,100 lbs. 2,700 lbs. Desired inventory, November 30 1,800 lbs. 1,500 lbs. 2,900 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
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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 | 79,000 | 59,000 |
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 | 2,700 | lbs. | 1,100 | lbs. | 2,700 | lbs. |
| Desired inventory, November 30 | 1,800 | lbs. | 1,500 | lbs. | 2,900 | 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.
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 | fill in the blank 2 | fill in the blank 3 | fill in the blank 4 | |||||
| 16" pizza | fill in the blank 5 | fill in the blank 6 | fill in the blank 7 | |||||
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fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | |||||
| Total units available | fill in the blank 12 | fill in the blank 13 | fill in the blank 14 | |||||
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fill in the blank 16 | fill in the blank 17 | fill in the blank 18 | |||||
| Total units to be purchased | fill in the blank 19 | fill in the blank 20 | fill in the blank 21 | |||||
| Unit price | x | $fill in the blank 22 | x | $fill in the blank 23 | x | $fill in the blank 24 | ||
| Total direct materials to be purchased | $fill in the blank 25 | $fill in the blank 26 | $fill in the blank 27 | $fill in the blank 28 |
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