Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 13,300 20,700

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. 220 lb. 300 lb.
Desired inventory, September 30 620 lb. 210 lb. 330 lb.
Price per pound $1.00 $2.80 $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 $ $ $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

World Class Internal Audit Tales From My Journey

Authors: Norman Marks

1st Edition

1500791962, 978-1500791964

More Books

Students also viewed these Accounting questions