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

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 12,900 21,700 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, Romano's has determined the following information about each material Tomato Cheese Dough 640 lbs. 240 lbs. 320 bs. 670 lbs. 230 lbs. 350 Ibs. Estimated inventory, September 1 Desired inventory, September 30 Price per pound 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. $1.50 $2.30 $3.00

Explanation / Answer

Direct material purchase budget :

Dough Tomato Cheese Total Units required for production 12" Pizza 11610 7740 10320 16" Pizza 32550 21700 28210 Desired ending inventory 670 230 350 Total units available 44830 29670 38880 Less: Beginning inventory -640 -240 -320 Total units to be purchased 44190 29430 38560 Unit price 1.5 2.3 3 Total direct materials to be purchased 66285 67689 115680 249654

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