2 Lorenzos 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 15,000 22,000 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 lb per unit Tomato 0 50 0 70 Cheese 0 70 1 30 In addition, Lorenzos has determined the following information about each material Dough Tomato Cheese Estimated inventory, September 1 550 lb 200 lb 330 lb Desired inventory, September 30 580 lb 190 lb 360 lb Price per pound $1 10 $2 40 $3 10 Prepare September's direct materials purchases budget for Lorenzos Frozen Pizza Inc When required, enter unit prices to the nearest cent Lorenzos 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 pounds required Total units to be purchased Unit price x $ x $ x $ Total direct materials to be purchased $ $ $ $ 22 3 Excercises Problems Timur Estimated inventory, September 1 550 lb 200 lb 330 lb Desired inventory, September 30 580 lb 190 lb 360 lb Price per pound $1 10 $2 40 $3 10 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 12,000 7,500 10,500 16 pizza 33,000 15,400 28,600 Plus desired inventory, September 30 45,000 X 22,900 X 39,100 x 580 X 190 X 360 X Total pounds required Less estimated inventory, September 1 550 200 330 46,130 X 23,290 X 39,790 x Total units to be purchased Unit price x $ 1 10 x $ 2 40 x $ 3 10 Total direct materials to be purchased $ 50,743 X $ 55,896 X $123,349 X $229,988 X Feedback Check My Work Remember to take into account materials required for production, desired ending materials inventory and estimated beginning materials inventory when calculating direct materials to be purchased Check My Work 1 more Check My Work uses remaining Previous Next

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2. Lorenzos Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for September: Units

Lorenzos 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	15,000	22,000

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	lb. per unit
	Tomato	0.50		0.70
	Cheese	0.70		1.30

In addition, Lorenzos has determined the following information about each material:

	Dough		Tomato		Cheese
Estimated inventory, September 1	550	lb.	200	lb.	330	lb.
Desired inventory, September 30	580	lb.	190	lb.	360	lb.
Price per pound	$1.10		$2.40		$3.10

Prepare September's direct materials purchases budget for Lorenzos Frozen Pizza Inc. When required, enter unit prices to the nearest cent.

Lorenzos 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 pounds required	?	?	?
?	?	?	?
Total units to be purchased
Unit price	x $ ?	x $ ?	x $ ?
Total direct materials to be purchased	$ ?	$ ?	$ ?	$ ?

image text in transcribed

22-3 Excercises & Problems Timur Estimated inventory, September 1 550 lb. 200 lb. 330 lb. Desired inventory, September 30 580 lb. 190 lb. 360 lb. Price per pound $1.10 $2.40 $3.10 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 12,000 7,500 10,500 16" pizza 33,000 15,400 28,600 Plus desired inventory, September 30 45,000 X 22,900 X 39,100 x 580 X 190 X 360 X Total pounds required Less estimated inventory, September 1 -550 -200 -330 46,130 X 23,290 X 39,790 x Total units to be purchased Unit price x $ 1.10 x $ 2.40 x $ 3.10 Total direct materials to be purchased $ 50,743 X $ 55,896 X $123,349 X $229,988 X Feedback Check My Work Remember to take into account materials required for production, desired ending materials inventory and estimated beginning materials inventory when calculating direct materials to be purchased. Check My Work 1 more Check My Work uses remaining. Previous Next