EX $8-9$ Direct materials purchases budget

Obj. $4$

Tobin's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for ${12}^{\text{'}\text{'}}$ and ${16}^{\text{'}\text{'}}$ frozen pizzas for N$$vember:

$\backslash$table$[[,$Units$],[,{12}^{zza},16"$ Pizza$],[$Budgeted production volume,$70,000,50,000]]$

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:

$\backslash$table$[[,{116}^{zza}$ Pizza,$],[$Direct materials:,$0\mathrm{.}55lb.$ per unit,$0\mathrm{.}80lb.$ per unit$],[$Dough$,0\mathrm{.}25,0\mathrm{.}40],[$Tomato$,0\mathrm{.}70,1\mathrm{.}20]]$

In addition, Tobin's has determined the following information about each material:

$\backslash$table$[[,$Dough,Tomato,Cheese$],[$Estimated inventory, November $1,2,500lbs.,1,000lbs.,3,lb$ lbs$.],[$Desired inventory, November $30,2,000lbs.,1,200lbs.,2,800lbs.],[$Price per pound,$$0\mathrm{.}50,$$$0\mathrm{.}60,$$$0\mathrm{.}85$