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 16,000 23,200 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 1 230 Ibs. 560 lbs. 370 Ibs. 590 lbs 220 lbs Desired inventory, September 30 400 ibs. Price per pound $2.50 $3.00 $1.40 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.

Answer 1

Direct material purchase budget

For the month ending September 30

	Dough	Tomato	Cheese	Total
Units required for production
12"Pizza	14400	9600	12800
16"Pizza	34800	23200	30160
Desired ending inventory	590	220	400
Total Units available	49790	33020	43360
Less: Beginning inventory	-560	-230	-370
Total Units to be purchased	49230	32790	42990
Unit price	1.4	2.5	3
Total Direct materials to be purchased	68922	81975	128970	279867