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 13,300 27,000 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 0.90 lb. 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, September 1 530 lbs. 240 lbs. 290 lbs. Desired inventory, September 30 560 lbs. 230 lbs. 320 lbs. Price per pound $1.20 $2.60 $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 Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending September 30 Dough Tomato Cheese Total Units required for production: 12" pizza 16" pizza Total units available Total units to be purchased Unit Price x $ x $ x $ Total direct materials to be purchased $ $ $ $

Answer 1

Answer-

Romano's Frozen Pizza Inc.
Direct Materials Purchase Budget
For the month ending September 30
Particulars	Dough	Tomato	Cheese	Total
Units required for production:
12" pizza	13300 units*0.90 lb per unit =11970 lbs	13300 units*0.60 lb per unit =7980 lbs	13300 units*0.80 lb per unit =10640 lbs	30590
16" pizza	27000 units*1.50 lb per unit =40500 lbs	27000 units*1.00 lb per unit =27000 lbs	27000 units*1.30 lb per unit =35100 lbs	102600
Add:-Closing inventory	560	230	320	1110
Less:- Beginning Inventory	530	240	290	1060
Total units to be purchased (a)	52500	34970	45770	133240
Unit price (b)	$1.20	$2.60	$3.10
Total direct materials to be purchased (c=a*b)	63000	90922	141887	295809