CH 22. Q 4

Direct Materials Purchases Budget Lorenzo'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" Pizza16" Pizza Budgeted production volume 16,300 25,500 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 Tomato Cheese 0.80 lb. per unit 0.50 0.70 1.50 lbs. per unit 0.70 1.30 In addition, Lorenzo's has determined the following information about each material Dough 580 lbs 610 lbs Tomato 230 lbs 220 lbs Cheese 360 lbs 390 lbs Estimated inventory, September 1 Desired inventory, September 30 Price per pound Prepare September's direct materials purchases budget for Lorenzo's Frozen Pizza Inc. When required, enter unit prices to the nearest cent. $1.10 $2.60 $3.30