Question

1. 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	16,600		26,300

   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	600	lbs.	190	lbs.	370	lbs.
   Desired inventory, September 30	630	lbs.	180	lbs.	400	lbs.
   Price per pound	$1.10		$2.40		$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	16600 units*0.90 lb per unit =14940 lbs	16600 units*0.60 lb per unit =9960 lbs	16600 units*0.80 lb per unit =13280 lbs	38180
16" pizza	26300 units*1.50 lb per unit =39450 lbs	26300 units*1.00 lb per unit =26300 lbs	26300 units*1.30 lb per unit =34190 lbs	99940
Add:-Closing inventory	630	180	400	1210
Less:- Beginning Inventory	600	190	370	1160
Total units to be purchased (a)	54420	36250	47500	138170
Unit price (b)	$1.10	$2.40	$3.10
Total direct materials to be purchased (c=a*b) $	59862	87000	147250	294112