Direct material purchase budget

Romanos frozen pizza Inc. has determined from its production budget the following estimated production volume for 12 and 16 frozen pizzas for September:

Units

12 pizza. 16 pizza

Budgeted production volume. 14,200. 27,200

There are three direct materials used in producing the two types of pizza. The quantities o direct materials expected to be used for each pizza are as follows:

12 Pizza. 16 Pizza

Direct materials:

Dough. 0.90lb. Per unit. 1.50 lbs. per unit

Tomato. 0.60. 1.00

Cheese. 0.80. 1.30

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

Dough. Tomato. Cheese

Estimated inventory, sept.1 580lbs. 230 lbs 340 lbs

Desired inventory, sept.30 610 lbs. 220 lbs 370 lbs.

Price per pound $1.20 $2.10 $3.10

Prepare septembers Direct materials purchases budget for Romanos Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Romanos Feozen Pizza Inc.

Direct Materials purchases Budget

For the Month Ending September 30

Units required for production. Dough. Tomato. Cheese. Total

12 pizza.

16 pizza

________

Total units available

Total units purchased

Unit price X $ X$ X$

Total direct materials to be purchased