Question
Direct materials purchases budget OBJ. 4 Morettis Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12 and 16
Direct materials purchases budget
OBJ. 4 Morettis Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12 and 16 frozen pizzas for September 2014: Units 12 Pizza 16 Pizza Budgeted production volume 4,700 8,100 There are three direct materials 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 1.40 lbs. per unit Tomato 0.50 0.90 Cheese 0.70 1.20 In addition, Morettis has determined the following information about each material: Dough Tomato Cheese Estimated inventory, September 1, 2014 550 lbs. 180 lbs. 315 lbs. Desired inventory, September 30, 2014 620 lbs. 160 lbs. 345 lbs. Price per pound $0.90 $1.70 $2.40 Prepare Septembers direct materials purchases budget for Morettis Frozen Pizza Inc.
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