Lorenzos Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12
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Question:
Units | ||||
12" Pizza | 16" Pizza | |||
Budgeted production volume | 12,500 | 21,800 |
Three direct materials are 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 | 0.80 | lb. per unit | 1.50 | lbs. per unit | |
Tomato | 0.50 | 0.70 | |||
Cheese | 0.70 | 1.30 |
In addition, Lorenzo’s has determined the following information about each material:
Dough | Tomato | Cheese | ||||
Estimated inventory, September 1 | 490 | lbs. | 230 | lbs. | 275 | lbs. |
Desired inventory, September 30 | 580 | lbs. | 185 | lbs. | 340 | lbs. |
Price per pound | $0.50 | $2.20 | $2.60 |
Prepare September’s direct materials purchases budget for Lorenzo’s Frozen Pizza Inc. When required, enter unit prices to the nearest cent.
Lorenzo’s Frozen Pizza Inc. | ||||
Direct Materials Purchases Budget | ||||
For the Month Ending September 30 | ||||
Dough | Tomato | Cheese | Total | |
Units required for production: | ||||
12" pizza | ||||
16" pizza | ||||
Total | ||||
Total units to be purchased | ||||
Unit price | x $ | x $ | x $ | |
Total direct materials to be purchased | $ | $ | $ | $ |
Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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