Prepare September's direct materials purchases budget for Your Pie Inc. YOUR PIE INC. Direct Materials Purchases Budget For the Month Ending September 30 Direct Materials: Units required for production: 12" pizza 16" pizza Total Total units to be purchased Unit price Total direct materials to be purchased 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:
Budgeted production volume
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
0.60 lb. per unit
0.30
Total
0.50
Estimated inventory, September 1
Desired inventory, September 30
Price per pound
12" Pizza
Dough
Tomato
Cheese
In addition, Zippy's has determined the following information about each material:
Tomato
Direct Materials:
Units required for production:
12" pizza
16" pizza
Units
16,300
Total units to be purchased
Unit price
Total direct materials to be purchased
16" Pizza
16" Pizza
1.00 lb. per unit
0.45
0.80
20,600
Dough
620 lbs.
650 lbs.
$1.50
220 lbs.
210 lbs.
Prepare September's direct materials purchases budget for Your Pie Inc.
YOUR PIE INC.
Direct Materials Purchases Budget
For the Month Ending September 30
$2.60
Cheese
270 lbs.
300 lbs.
$3.30
Dough Tomato Cheese
Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb639b6e6-d472-46c7-8d71-4103fc0c872b%2F28f9d4c6-5a9e-407b-8bc5-2cccd80ed0cd%2Fe2a9pds_processed.png&w=3840&q=75)
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