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: 3333333 Units3333 3 12" Pizza 16" Pizza Budgeted production volume 3 33 12.700 24,900 Three direct materials are used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza follows: BB3 12" Pizza 16" Direct material Dough 0.30 ib. per unit 1.50 ib. per unit BR333 Tomato 0.50 0.703 233 1.30 33 3 1 6" Pizza SS3 0.20 Cheese In addition, Lorenzo's has determined the following information about each mater Dough 630 ib. Estimated inventory, September 1 Desired inventory, September 30 Tomato 160 16.3 160 Cheese 320 b. 350 lb. 660 lb.

Answer 1

LORENZO'S FROZEN PIZZA INC DIRECT MATERIAL PURCHASE BUDGET FOR THE MONTH ENDING SEPTEMBER 30
	Dough	Tomato	Cheese	Total
units required for production
12"pizza	12700*.8= 10160	12700*.5=6350	12700*.7=8890
16"Pizza	24900*1.5=37350	24900*.7=17430	24900*1.3=32370
Desired ending inventory as on 30/9	660	160	350
Total pounds required	48170	23940	41610
Less:Beginning inventory as on 1/9	-630	-160	-320
Total units to be purchased (1)	47540	23780	41290
unit price (2)	1.5	2.4	3.3
Total direct material to be purchased (1*2)	71310	57072	136257	264639

**1Ib is equals to 1 pound