Direct Materials Purchases Budget Lorenzo’s Frozen Pizza Inc. has determined fro

Question

Direct Materials Purchases Budget

Lorenzo’s Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12" and 16" frozen pizzas for September:

Three direct materials are 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, Lorenzo’s has determined the following information about each material:

Prepare September’s direct materials purchases budget for Lorenzo’s Frozen Pizza Inc. When required, enter unit prices to the nearest cent.

Explanation / Answer

Lorenzo’s Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending September 30 Dough Tomato Cheese Total Units required for production: 12" pizza 10000 6250 8750 16" pizza 32700 15260 28340 Plus desired inventory, September 30, 2016 580 185 340 Total 33280 15445 28680 Less estimated inventory, September 1, 2016 490 230 275 Total units to be purchased 32790 15215 28405 Unit price 0.5 2.2 2.6 Total direct materials to be purchased 16395 33473 73853 123721

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.