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Direct Materials Purchases Budget Romano's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12 and 16 frozen
Direct Materials Purchases Budget Romano's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12" and 16" frozen pizzas for September: Units Budgeted production volume 12" Pizza 16" Pizza 25,900 14,500 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: Direct materials: 12" Pizza 16" Pizza Dough 0.90 lb. per unit 1.50 lbs. per unit Tomato 0.60 1.00 Cheese 0.80 1.30 In addition, Romano's has determined the following information about each material: Dough Tomato Cheese Estimated inventory, September 1 630 lbs. 160 lbs. 300 lbs. Desired inventory, September 30 660 lbs. 160 lbs. 330 lbs. Price per pound $1.40 $2.40 $3.20 Prepare September's direct materials purchases budget for Romano's Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Romano'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 Total units available Total units to be purchased Unit Price Total direct materials to be purchased x $ x
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