Direct Materials Purchases Budget 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 14,700 27,200 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 lb. 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 1 630 Ibs. 220 Ibs. 330 Ibs. Desired inventory, September 30 660 Ibs. 210 Ibs. 360 Ibs. Price per pound $1.50 $2.60 $3.00

Direct Materials Purchases Budget 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 14,700 27,200 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 lb. 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 1 630 Ibs. 220 Ibs. 330 Ibs. Desired inventory, September 30 660 Ibs. 210 Ibs. 360 Ibs. Price per pound $1.50 $2.60 $3.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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