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Direct Materials Purchases Budget Lorenzo's Frozen Puzza Inc, has determined from its production budget the following estimated production volumes for 12 and 16 frozen pizzas

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Direct Materials Purchases Budget Lorenzo's Frozen Puzza 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 15,100 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, Lorenzo's has determined the following information about each material: Dough Tomato Cheese Estimated inventory, September 1 580 lb 190 lb. 360 lb. Desired inventory, September 30 610 lb 180 lb 390 lb. Price per pound $1.50 $2.20 $3.40 Prepare September's direct materials purchases budget for Lorenzo's Frozen Pizza Inc. When required, enter unit prices to the nearest cent. Lorenzo's Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending September 30 Dough Tomato Cheese Total Units required for production: Tomato 0.50 0.70 Cheese 0.70 1.30 In addition, Lorenzo's has determined the following information about each material: Dough Tomato Cheese Estimated inventory, September 1 580 lb. 190 lb. 360 lb Desired inventory, September 30 610 lb. 180 lb. 390 lb. Price per pound $1.50 $2.20 $3.40 Prepare September's direct materials purchases budget for Lorenzo's Frozen Pizza Inc. When required, enter unit prices to the nearest cent. Lorenzo's 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 Plus desired inventory, September 30 Total pounds required Less estimated inventory, September 1 Total units to be purchased Unit price Total direct materials to be purchased

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