Direct material purchase budget Romano’s frozen pizza Inc. has determined from i
ID: 2431742 • Letter: D
Question
Direct material purchase budget
Romano’s frozen pizza Inc. has determined from its production budget the following estimated production volume for 12” and 16” frozen pizzas for September:
Units
12” pizza. 16” pizza
Budgeted production volume. 14,200. 27,200
There are three direct materials used in producing the two types of pizza. The quantities o direct materials expected to be used for each pizza are as follows:
12” Pizza. 16” Pizza
Direct materials:
Dough. 0.90lb. 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, sept.1 580lbs. 230 lbs 340 lbs
Desired inventory, sept.30 610 lbs. 220 lbs 370 lbs.
Price per pound $1.20 $2.10 $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 Feozen Pizza Inc.
Direct Materials purchases Budget
For the Month Ending September 30
Units required for production. Dough. Tomato. Cheese. Total
12” pizza.
16” pizza
________
Total units available
Total units purchased
Unit price X $ X$ X$
Total direct materials to be purchased
Explanation / Answer
RM Purchase Budget Dough Tomato Cheese Desired Inventory,September-30,2016 610 220 370 Add:-Production during September -12"Pizza (D@0.90lb, T@0.60lb, c@0.80lb 12780 8520 11360 Add:-Production during September -16"Pizza (D@1.50lb, T@1 lb, c@1.3lb 40800 27200 35360 Less:-Estimated Inventory,September-1,2016 580 230 340 Purchases oF RM (Units) 53610 35710 46750 Price per unit 1.2 2.1 3.1 Purchases oF RM (Amount-$) 64332 74991 144925
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