Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 13,500 24,200

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 1 520 lb. 180 lb. 290 lb.
Desired inventory, September 30 550 lb. 170 lb. 320 lb.
Price per pound $1.20 $2.30 $3.40

Prepare September's direct materials purchases budget for Lorenzos Frozen Pizza Inc. When required, enter unit prices to the nearest cent.

Dough Tomato Cheese Total
Units required for production:
12" pizza
16" pizza
Less desired inventory, September 1Less desired inventory, September 30Plus desired inventory, September 1Plus desired inventory, September 30Plus estimated inventory, September 1Plus estimated inventory, September 30 - Select - - Select - - Select -
Total pounds required
Less desired inventory, September 1Less desired inventory, September 30Less estimated inventory, September 1Less estimated inventory, September 30Plus estimated inventory, September 1Plus estimated inventory, September 30 - Select - - Select - - Select -
Total units to be purchased
Unit price
Total direct materials to be purchased

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Prove Equation (5.22).

Answered: 1 week ago

Question

Excel caculation on cascade mental health clinic

Answered: 1 week ago