Question
Nicolas Fresh Pizza has determined from its production budget that it will produce 10,000 large pizzas in the month of March. There are three materials
Nicolas Fresh Pizza has determined from its production budget that it will produce 10,000 large pizzas in the month of March.
There are three materials used in producing the pizza. Estimated quantities to be used per pizza are as follows:
Dough 0.90 lb per pizza
Tomato sauce 0.60 lb per pizza
Cheese 0.70 lb per pizza
Additional information is as follows:
Dough Tomato Sauce Cheese
Estimated beginning inventory, 3/1 680 lbs. 205 lbs. 305 lbs.
Desired ending inventory, 3/31 100 lbs. 50 lbs. 55 lbs.
Price per pound $1.25 $2.50 $3.05
Please prepare a direct materials purchases budget for the month of March, both in units anddollars.
You may use the template below to organize your thoughts.
Required:
Tell me the total pounds needed for all three direct materials and their related costs.
All work must be shown for credit, in a neat and easy to follow manner.
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