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Romano's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for June 2012: Prepare
Romano's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for June 2012:
Prepare June's direct materials purchases budget for Romano's Frozen Pizza Inc. Enter all amounts as positive numbers.
Units 12" Pizza 16" Pizza Budgeted production volume 5,200 9,400 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: 12" Pizza 16" Pizza Direct materials: Dough Tomato Cheese 0.90 lb. per unit 0.60 0.75 1.50 lbs. per unit 1.00 1.25 In addition, Romano's has determined the following information about each material; Estimated inventory, June 1, 2012 Desired inventory, June 30, 2012 Price per pound Dough 580 lbs. 640 lbs. $1.10 Tomato 210 lbs. 200 lbs. $2.60 Cheese 325 lbs. 355 lbs. $2.80Step by Step Solution
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