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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
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 | 12,700 | 26,600 |
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 | 600 | lb. | 200 | lb. | 290 | lb. |
Desired inventory, September 30 | 630 | lb. | 190 | lb. | 320 | lb. |
Price per pound | $1.20 | $2.30 | $3.00 |
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 | $ | $ | $ | $ |
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