1. Direct Materials Purchases Budget

   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	15,200		21,000

   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	590	lb.	200	lb.	320	lb.
   Desired inventory, September 30	620	lb.	190	lb.	350	lb.
   Price per pound	$1.20		$2.20		$3.20

   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	$	$	$	$

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