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ACCOUNTING HELP Lorenzos Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for September:
ACCOUNTING HELP
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 | 15,400 | 25,100 |
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 | 590 | lb. | 230 | lb. | 300 | lb. |
Desired inventory, September 30 | 620 | lb. | 220 | lb. | 330 | 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.
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