10 ### Direct Materials Purchases BudgetTobin’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:** 56,000- **16” Pizza:** 36,000There 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:| Direct Materials | 12" Pizza (lbs. per unit) | 16" Pizza (lbs. per unit) ||------------------|---------------------------|---------------------------|| Dough | 0.55 | 0.80 || 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. | 1,000 lbs. | 3,200 lbs. || Desired Inventory, November 30 | 1,900 lbs. | 1,000 lbs. | 2,500 lbs. || Price per Pound | $0.60 | $0.70 | $0.95 |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. **Direct Materials Purchases Budget for Tobin’s Frozen Pizza Inc.**This image outlines the process for preparing November’s direct materials purchases budget for Tobin's Frozen Pizza Inc. The budget is structured to help calculate the requirements and costs associated with producing two sizes of pizzas: 12-inch and 16-inch. The budget specifies three main materials: Dough, Tomato, and Cheese.**Units Required for Production:**- **12" Pizza**- **16" Pizza**For both sizes, the spreadsheet requires entries for Dough, Tomato, and Cheese, aligning with the specific units needed for each ingredient.**Detailed Sections:**- **Total Units Available:** This section is intended to display the current inventory levels of each material.- **Total Units to be Purchased:** The calculation here derives from the total units required minus the total units available, highlighting the additional amount needed for production.- **Unit Price:** The cost per unit for Dough, Tomato, and Cheese is to be entered here, allowing for the calculation of total purchase cost.- **Total Direct Materials to be Purchased:** This section calculates the total expenditure on each material by multiplying the number of units to be purchased by their respective unit prices, providing the total dollar amount needed.**Instructions:** For any value that needs to be inputted as negative or subtracted, a minus sign should be used. The final answers in the budget should be rounded to the nearest dollar.This structured approach aids in managing and forecasting the material needs and budgeting efficiently for the production cycle ending November 30.

Direct material purchase budget is the statement which is prepared in order to forecast the amount…

Tobin's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12" and 16" frozen pizzas for November: 16" Pizza Budgeted production volume 56,000 36,000 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: 16" Pizza 12" Pizza Units XE Direct materials: Dough Tomato Cheese 0.70 In addition, Tobin's has determined the following information about each material: 0.55 lb. per unit 0.25 12" Pizza 0.80 lbs. per unit 0.40 1.20 Estimated inventory, November 1 Tomato 1,000 lbs. 1,000 lbs. Cheese 3,200 lbs. 2,500 lbs. Desired inventory, November 30 Price per pound $0.70 $0.95 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 Dough 2,700 lbs. 1,900 lbs. $0.60