Direct Materials Purchases Budget Romano’s Frozen Pizza Inc. has determined from
ID: 2404360 • Letter: D
Question
Direct Materials Purchases Budget
Romano’s Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for September:
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:
In addition, Romano's has determined the following information about each material:
Prepare September's direct materials purchases budget for Romano’s Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Units 12" Pizza 16" Pizza Budgeted production volume 15,700 24,600Explanation / Answer
Romano’s Frozen Plaza Inc.
Direct Materials Purchase Budget
For the month ending September 30
Dough
Tomato
Cheese
Total
Units required for production:
12” pizza
15700*0.90
=14130 lbs
15700*0.60
=9420 lbs
15700*0.80
=12560 lbs
16” pizza
24600*1.50
=36900 lbs
24600*1.00
=24600 lbs
24600*1.30
=31980 lbs
51030 lbs
34020 lbs
44540 lbs
Total units available
640 lbs
220 lbs
370 lbs
Total units required at the month end
670 lbs
210 lbs
400 lbs
Total units to be purchased
51030+670-640
=51060
34020+210-220
=34010
44540+400-370
=44570
Unit Price
$ 1.30
$ 2.30
$ 3.20
Total Materials to be purchased
$ 66378
$ 78223
$ 142624
$ 287225
Romano’s Frozen Plaza Inc.
Direct Materials Purchase Budget
For the month ending September 30
Dough
Tomato
Cheese
Total
Units required for production:
12” pizza
15700*0.90
=14130 lbs
15700*0.60
=9420 lbs
15700*0.80
=12560 lbs
16” pizza
24600*1.50
=36900 lbs
24600*1.00
=24600 lbs
24600*1.30
=31980 lbs
51030 lbs
34020 lbs
44540 lbs
Total units available
640 lbs
220 lbs
370 lbs
Total units required at the month end
670 lbs
210 lbs
400 lbs
Total units to be purchased
51030+670-640
=51060
34020+210-220
=34010
44540+400-370
=44570
Unit Price
$ 1.30
$ 2.30
$ 3.20
Total Materials to be purchased
$ 66378
$ 78223
$ 142624
$ 287225
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