Question

Marino's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for June 2016:

	Units
	12" Pizza		16" Pizza
Budgeted production volume	13,800		20,800

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, Marino's has determined the following information about each material:

	Dough		Tomato		Cheese
Estimated inventory, June 1, 2016	530	lbs.	230	lbs.	350	lbs.
Desired inventory, June 30, 2016	560	lbs.	220	lbs.	380	lbs.
Price per pound	$1.5		$2.6		$3

Prepare June's direct materials purchases budget for Marino's Frozen Pizza Inc. When required, enter unit prices to the nearest cent.

Marino's Frozen Pizza Inc.
Direct Materials Purchases Budget
For the Month Ending June 30, 2016
	Dough	Tomato	Cheese	Total
Units required for production:
12" pizza
16" pizza
Total
Total units to be purchased
Unit price	x $	x $	x $
Total direct materials to be purchased	$	$	$	$ Direct Materials Purchases Budget Marino's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12" and 16" frozen pizzas for June 2016: Units 12" Pizza 16" Pizza Budgeted production volume 13,800 20,800 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 Tomato Cheese 0.90 lb. per unit 0.60 0.80 1.50 lbs. per unit 1.00 1.30 In addition, Marino's has determined the following information about each material: Estimated inventory, June 1, 2016 Desired inventory, June 30, 2016 Price per pound Prepare June's direct materials purchases budget for Marino's Frozen Pizza Inc. When required, enter unit prices to the nearest cent. Dough Tomato Cheese 530 lbs. 230 lbs. 350 lbs. 560 lbs. 220 lbs. 380 lbs. $1.5 $2.6 53 Marino's Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending June 30, 2016 Dough Tomato Cheese Total Units required for production: 12" pizza 16" pizza Less desired inventory, June 1, 2016 Less desired i Plus desired inventory, June 1, 2016 x Plus desired inventory, June 30, 2016 Plus estimated inventory, June 1, 2016 nventory, June 30, 2016 Plus estimated inventory, June 30, 2016

Answer 1