Direct Materials Purchases Budget Romano’s Frozen Pizza Inc. has determined from
ID: 2405704 • 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:
Units
12" Pizza
16" Pizza
Budgeted production volume
13,700
26,600
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
0.90
lb. per unit
1.50
lbs. per unit
Tomato
0.60
1.00
Cheese
0.80
1.30
In addition, Romano's has determined the following information about each material:
Dough
Tomato
Cheese
Estimated inventory, September 1
570
lbs.
210
lbs.
310
lbs.
Desired inventory, September 30
600
lbs.
200
lbs.
340
lbs.
Price per pound
$1.10
$2.30
$3.10
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.
Romano’s Frozen Pizza Inc.
Direct Materials Purchases Budget
For the Month Ending September 30
Dough
Tomato
Cheese
Total
Units required for production:
12" pizza
16" pizza
Total units available
Total units to be purchased
Unit Price
x $
x $
x $
Total direct materials to be purchased
$
$
$
$
Units
12" Pizza
16" Pizza
Budgeted production volume
13,700
26,600
Explanation / Answer
Romano’s Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending September 30 Dough Tomato Cheese Total Units required for production: 12" pizza 12330 8220 10960 16" pizza 39900 26600 34580 Desired ending inventory 600 200 340 Total 52830 35020 45880 Estimated inventory, September 1 570 210 310 Total units to be purchased 52260 34810 45570 Unit Price 1.1 2.3 3.1 Total direct materials to be purchased 57486 80063 141267 278816
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