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Direct Materials Purchases Budget Lorenzos Frozen Pizza Inc. has determined from its A budget of estimated unit production.production budget the following estimated production volumes for

  1. Direct Materials Purchases Budget

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

    Units
    12" Pizza 16" Pizza
    Budgeted production volume 16,600 20,900

    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 1 650 lb. 190 lb. 270 lb.
    Desired inventory, September 30 680 lb. 180 lb. 300 lb.
    Price per pound $1.40 $2.40 $3.30

    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
    • Less desired inventory, September 1
    • Less desired inventory, September 30
    • Plus desired inventory, September 1
    • Plus desired inventory, September 30
    • Plus estimated inventory, September 1
    • Plus estimated inventory, September 30
    Total pounds required
    • Less desired inventory, September 1
    • Less desired inventory, September 30
    • Less estimated inventory, September 1
    • Less estimated inventory, September 30
    • Plus estimated inventory, September 1
    • Plus estimated inventory, September 30
    Total units to be purchased
    Unit price x $ x $ x $
    Total direct materials to be purchased $ $ $ $

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