Direct Materials Purchases Budget Marino\'s Frozen Pizza Inc. has determined fro

Question

Direct Materials Purchases Budget Marino's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12" and 16" frozen pizzas for June 2014 Units 12" Pizza 16" Pizza Budgeted production volume 13,400 27,100 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 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 640 lbs.240 lbs.300 lbs. 670 lbs. 230 lbs. 330 lbs. Tomato Cheese Estimated inventory, June 1, 2014 Desired inventory, June 30, 2014 Price per pound $1.50 $2.70 $3.50 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

Explanation / Answer

Statement Showing Budgeted Cost material Purchase Daugh Tomato Cheese Total Unit Required for prodcution 12th pizza                   12,060                                8,040                  10,720 16th Pizza                   40,650                             27,100                  35,230 Total                   52,710                             35,140                  45,950 Desired Ending Inventory                         670                                   230                        330 Total Raw material Required                   53,380                             35,370                  46,280 Less: Beginning Inventory                         640                                   240                        300 Total Unit to be purchased                   52,740                             35,130                  45,980 Unit price $1.50 $2.70 $3.50 Total Direct material to be purchased $79,110.00 $94,851.00 $160,930.00 $334,891.00

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