Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 21, Problem 21.9EX
To determine
Budgeting is a process to prepare the financial statement by the manager to estimate the organization’s future actions. It is also helpful to satisfy the everyday activities.
Production Budget shows the quantities of units that a company must produce to meet the budgeted sales and inventory.
To Prepare: The September’s direct materials purchases budget for Incorporation R.
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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
14,600
26,000
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
0.90 Ib. per unit
1.50 Ibs. per unit
Tomato
0.60
1.00
Cheese
0.80
1.30
In addition, Tobin's has determined the following
information about each material:
Dough
Tomato
Cheese
Estimated inventory, November 1
600 Ibs.
210 Ibs.
270 Ibs.
Desired inventory, November 30
630 Ibs.
200 Ibs.
300 Ibs.
Price per pound
$1.00
$2.60
$3.10
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.
Tobin's Frozen Pizza Inc.
Direct Materials…
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:
Budgeted production volume
Units 12" Pizza Units 16" Pizza
13,200
22,800
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:
Direct materials:
Dough
Tomato
Cheese
12" Pizza
16" Pizza
0.90 lb. per unit
1.50 lb. per unit
0.60
1.00
0.80
1.30
In addition, Tobin's has determined the following information about each material:
Dough
Tomato
Cheese
Estimated inventory, November 1
570 lbs.
160 lbs.
310 lbs.
Desired inventory, November 30
Price per pound
600 lbs.
$1.40
160 lbs.
340 lbs.
$2.80
$3.10
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.
Tobin's Frozen Pizza Inc.
Direct…
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
14,900
25,000
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
lb. per unit
1.00
lb. 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
560
lbs.
200
lbs.
330
lbs.
Desired inventory, September 30
590
lbs.
190
lbs.
360
lbs.
Price per pound
$1.30
$2.20
$3.20
Prepare September's direct materials purchases budget for Zippy's Frozen Pizza Inc.
ZIPPY’S FROZEN PIZZA INC.
Direct Materials Purchases…
Chapter 21 Solutions
Financial & Managerial Accounting
Ch. 21 - Prob. 1DQCh. 21 - Briefly describe the type of human behavior...Ch. 21 - What behavioral problems are associated with...Ch. 21 - What behavioral problems are associated with...Ch. 21 - Under what circumstances would a static budget be...Ch. 21 - How do computerized budgeting systems aid firms in...Ch. 21 - Why should the production requirements Set forth...Ch. 21 - Prob. 8DQCh. 21 - A. Discuss the purpose of the cash budget. B. If...Ch. 21 - Give an example of how the capital expenditures...
Ch. 21 - Flexible budgeting At the beginning of the period,...Ch. 21 - Production budget Pasadena Candle Inc. projected...Ch. 21 - Direct materials purchases budget Pasadena Candle...Ch. 21 - Direct labor cost budget Pasadena Candle Inc....Ch. 21 - Cost of goods sold budget Prepare a cost of goods...Ch. 21 - Prob. 21.6BECh. 21 - Personal budget At the beginning of the school...Ch. 21 - Flexible budget for selling and administrative...Ch. 21 - Static budget versus flexible budget The...Ch. 21 - Flexible budget for Assembly Department Steelcase...Ch. 21 - Production budget Weightless Inc. produces a Bath...Ch. 21 - Sales and production budgets Sonic Inc....Ch. 21 - Prob. 21.7EXCh. 21 - Prob. 21.8EXCh. 21 - Prob. 21.9EXCh. 21 - Prob. 21.10EXCh. 21 - Direct materials purchases budget Anticipated...Ch. 21 - Direct labor cost budget Ace Racket Company...Ch. 21 - Production and direct labor cost budgets Levi...Ch. 21 - Factory overhead cost budget Sweet Tooth Candy...Ch. 21 - Cost of goods sold budget Delaware Chemical...Ch. 21 - Cost of goods sold budget The controller of...Ch. 21 - Prob. 21.17EXCh. 21 - Schedule of cash collections of accounts...Ch. 21 - Schedule of cash payments for a service company...Ch. 21 - Prob. 21.20EXCh. 21 - Capital expenditures budget On January 1, 20Y6,...Ch. 21 - Forecast sates volume and sales budget For 20Y8,...Ch. 21 - Sales, production, direct materials purchases, and...Ch. 21 - Budgeted income statement and supporting budgets...Ch. 21 - Cash budget The controller of Bridgeport...Ch. 21 - Budgeted income statement and balance sheet As a...Ch. 21 - Forecast sales volume and sales budget Sentinel...Ch. 21 - Sales, production, direct materials purchases, and...Ch. 21 - Budgeted income statement and supporting budgets...Ch. 21 - Cash budget The controller of Mercury Shoes Inc....Ch. 21 - Budgeted income statement and balance sheet As a...Ch. 21 - Nursing staff budget Mercy Hospital staffs its...Ch. 21 - Parking lot staff budget Adventure Park is a large...Ch. 21 - Prob. 3ADMCh. 21 - Prob. 21.1TIFCh. 21 - Communication The city of .Milton has an annual...
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- Preparing a Direct Materials Purchases Budget Tulum Inc. makes a Mexican chocolate mix sold in 4-pound boxes. Planned production in units for the first 3 months of the coming year is: Each box requires 4.2 pounds of chocolate mix and one box. Company policy requires that ending inventories of raw materials for each month be 10% of the next months production needs. That policy was met for the ending inventory of December in the prior year. The cost of 1 pound of chocolate mix is 1.50. The cost of one box is 0.10. (Note: Round all unit amounts to the nearest unit. Round all dollar amounts to the nearest dollar.) Required: 1. Calculate the ending inventory of chocolate mix in pounds for December of the prior year and for January and February. What is the beginning inventory of chocolate mix for January? 2. Prepare a direct materials purchases budget for chocolate mix for the months of January and February. 3. Calculate the ending inventory of boxes for December of the prior year and for January and February. 4. Prepare a direct materials purchases budget for boxes for the months of January and February.arrow_forwardPasadena Candle Inc. budgeted production of 785,000 candles for January. Wax is required to produce a candle. Assume 10 ounces of wax is required for each candle. The estimated January 1 wax inventory is 16,000 pounds. The desired January 31 wax inventory is 12,500 pounds. If candle wax costs 1.24 per pound, determine the direct materials purchases budget for January.arrow_forwardDirect 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 14,600 24,600 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 lb. 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 1 600 lbs. 240 lbs. 340 lbs. Desired inventory, September 30 630 lbs. 230 lbs. 370 lbs. Price per pound $1.00 $2.10 $3.10 Prepare September's direct materials purchases budget for Zippy's Frozen Pizza Inc. ZIPPY’S FROZEN PIZZA INC. Direct Materials Purchases…arrow_forward
- 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 14,600 24,600 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 lb. 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 1 600 lbs. 240 lbs. 340 lbs. Desired inventory, September 30 630 lbs. 230 lbs. 370 lbs. Price per pound $1.00 $2.10 $3.10 Prepare September's direct materials purchases budget for Zippy's Frozen Pizza Inc. ZIPPY’S FROZEN PIZZA INC. Direct Materials Purchases…arrow_forwardDirect 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 85,000 65,000 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 Ib. per unit 0.80 Ibs. 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 2,200 Ibs. 1,100 Ibs. 2,900 Ibs. Desired inventory, November 30 2,100 Ibs. 1.200 Ibs. 3,000 Ibs. 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…arrow_forwardDirect Materials Purchases Budget Romano’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 12,800 25,700 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 0.90 lb. per unit 1.50 lbs. per unit Tomato 0.60 1.00 Cheese 0.80 1.30 In addition, Romano's has determined the following information about each material: Dough Tomato Cheese Estimated inventory, September 1 520 lbs. 190 lbs. 370 lbs. Desired inventory, September 30 550 lbs. 180 lbs. 400 lbs. Price per pound $1.40 $2.20 $3.00 Prepare September's direct materials purchases budget for Romano’s Frozen Pizza Inc. For those boxes in which you must enter subtracted…arrow_forward
- 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 15,900 23,900 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 0.90 lb. per unit 1.50 lbs. per unit Tomato 0.60 1.00 Cheese 0.80 1.30 In addition, Tobin's has determined the following information about each material: Dough Tomato Cheese Estimated inventory, November 1 620 lbs. 220 lbs. 270 lbs. Desired inventory, November 30 650 lbs. 210 lbs. 300 lbs. Price per pound $1.20 $2.40 $3.30 Prepare November's direct materials purchases budget for Tobin’s Frozen Pizza Inc. For those boxes in which you must enter subtracted or…arrow_forwardDirect Materials Purchases Budget Romano’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 15,100 23,200 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 0.90 lb. per unit 1.50 lbs. per unit Tomato 0.60 1.00 Cheese 0.80 1.30 In addition, Romano's has determined the following information about each material: Dough Tomato Cheese Estimated inventory, September 1 630 lbs. 200 lbs. 330 lbs. Desired inventory, September 30 660 lbs. 190 lbs. 360 lbs. Price per pound $1.50 $2.40 $3.20 Prepare September's direct materials purchases budget for Romano’s Frozen Pizza Inc. For those boxes in which you must enter subtracted…arrow_forwardDirect materials purchases budget Romano'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 6,900 10,300 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 0.70 lb. per unit 1.50 lbs. per unit Tomato 0.40 0.70 Cheese 0.60 1.30 In addition, Romano's has determined the following information about each material: Dough Tomato Cheese Estimated inventory, September 1 515 lbs. 245 lbs. 260 lbs. Desired inventory, September 30 600 lbs. 165 lbs. 355 lbs. Price per pound $0.60 $1.70 $2.30 Prepare September's direct materials purchases budget for Romano's Frozen Pizza Inc. For those boxes in which you must enter subtracted or…arrow_forward
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