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 16,100 24,800 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 EN PONOWNE Direct materials: Dough 0.90 lb. per unit 1.50 lbs. per unit 0.60 1.00 Tomato Cheese 0.80 1.30 In addition, Romano's has determined the following information about each material: Dough Tomato Cheese Estimated inventory, September 1 Desired inventory, September 30 Price per pound 520 lbs. 550 lbs. $1.30 240 lbs. 230 lbs. $2.40 320 lbs. 350 lbs. $3.40 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. Romano's Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending September 30

Answer 1

	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	14490	9660	12880
16" pizza	37200	24800	32240
Desired inventory, September 30	550	230	350
Total units available	52240	34690	45470
Estimated inventory, September 1	-520	-240	-320
Total units to be purchased	51720	34450	45150
Unit price	1.30	2.40	3.40
Total direct materials to be purchased	67236	82680	153510	303426
Workings:
	Dough	Tomato	Cheese
Units required for production:
12" pizza	=16100*0.9	=16100*0.6	=16100*0.8
16" pizza	=24800*1.5	=24800*1	=24800*1.3