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Lorenzo's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12 and 16 frozen pizzas for September: Units
Lorenzo'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 16,600 21,100 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: Direct materials: 12" Pizza 16" Pizza 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 1 540 lb. 210 lb. 270 lb. Desired inventory, September 30 570 lb. 200 lb. 300 lb. Price per pound $1.10 $2.70 $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 Units required for production: 12" pizza 16" pizza Total pounds required Total units to be purchased Unit price Total direct materials to be purchased Dough Tomato x $ x $ x $ Cheese Total
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