Direct Materials Purchases Budget Units 12\" Pizza 16\" Pizza Budgeted productio

Question

Direct Materials Purchases Budget

Units 12" Pizza 16" Pizza Budgeted production volume 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: 14,600 21,600 12" Pizza 16" Pizza Direct materials: Dough Tomato Cheese 0.90 lb. per unit 0.60 0.80 1.50 lbs. per unit 1.00 1.30 In addition, Marino's has determined the following information about each material: Dough Tomato Cheese Estimated inventory, June 1, 2014 Desired inventory, June 30, 2014 Price per pound 550 lbs. 160 lbs. 290 lbs. 580 lbs. 160 lbs. 320 lbs. $1.00 $2.20 $3.00 Hide Prepare June's direct materials purchases budget for Marino's Frozen Pizza Inc. When required, enter unit prices to the nearest cent. Marino's Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending June 30, 2014 Dough Tomato Cheese Total Units required for production: 12" pizza 16" pizza Total Total units to be purchased Unit price Total direct materials to be purchased

Explanation / Answer

type of pizzas 12" 16" Total (lb) Production of Pizzas (units) 14600 21600 Material required per unit (lb) Dough 0.90 1.50 Required for Production 13140 32400 45540 Add: ending inventory 580 46120 Less: beginning inventory -550 Quantity to be Purchased for the month 45570 type of pizzas 12" 16" Total (lb) Production of Pizzas (units) 14600 21600 Material required per unit (lb) Tomato 0.60 1.00 Required for Production 8760 21600 30360 Add: ending inventory 160 30520 Less: beginning inventory -160 Quantity to be Purchased for the month 30360 type of pizzas 12" 16" Total (lb) Production of Pizzas (units) 14600 21600 Material required per unit (lb) Cheese 0.80 1.30 Required for Production 11680 28080 39760 Add: ending inventory 320 40080 Less: beginning inventory -290 Quantity to be Purchased for the month 39790 Material Purchase Budget for June 2014 Dough Tomato Cheese Budgeted Purchase 45570 30360 39790 Price per pound ($) 1.00 2.20 3.00 Pbudgeted purchase price ($) 45570 66792 119370

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