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: Units 12" Pizza 16" Pizza Budgeted production volume 12,700 26,300

Answer 1

Direct material purchase budget
	Dough	Tomato	Cheese	Total
Units required
12'	10,160	6,350	8,890
16'	39,450	18,410	34,190
Desired Inventory, Sep 30	590	180	300
Total Pounds required	50,200	24,940	43,380
Estimated Inventory, Sep 1	560	190	270
Total units to be purchased	49,640	24,750	43,110
Unit Price	1.5	2.6	3
Cost	74,460	64,350	129,330	268,140

BC D E 1 Direct material purchase budget 2 Dough Tomato Cheese Tota 3 Units required 4 12' 5 16' 6 Desired Inventory, Sep 30 7 Total Pounds required 8 Estimated Inventory, Sep 1 9 Total units to be purchased 10 Unit Price 11 Cost |=12700*0.8 1=12700*0.5 1=12700*0.7 =26300*1.5 =26300*0.7 =26300*1.3 590 180 300 =SUM(B4:B6) =SUM(C4:C6) =SUM(D4:D6) 560 190 270 =B7-B8 =C7-C8 =D7-D8 1.5 2.6 =B9*B10 =C9*C10 =D9*D10 =SUM(B11:011)