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 16,500 25,400 Three direct materials are 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 0.80 lb. per unit 1.50 lb. per unit Tomato 0.50 0.70 Cheese 0.70 1.30 In addition, Lorenzo’s has determined the following information about each material: Dough Tomato Cheese Estimated inventory, September 1 590 lb. 180 lb. 380 lb. Desired inventory, September 30 620 lb. 170 lb. 410 lb. Price per pound $1.00 $2.30 $3.00 Prepare September's direct materials purchases budget for Lorenzo’s Frozen Pizza Inc. When required, enter unit prices to the nearest cent. Lorenzo’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 Less desired inventory, September 30 Total pounds required Less estimated inventory, September 1 Total units to be purchased Unit price x $ x $ x $ Total direct materials to be purchased $ $ $ $

Answer 1

Answer-

Lorenzo'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	16500 units*0.80 lb per unit =13200 lbs	16500 units*0.50 lb per unit =8250 lbs	16500 units*0.70 lb per unit =11550 lbs	33000
16" pizza	25400 units*1.50 lb per unit = 38100 lbs	25400 units*0.70 lb per unit =17780 lbs	25400 units*1.30 lb per unit =33020 lbs	88900
Add:-Closing inventory	620	170	410	1200
Less:- Beginning Inventory	590	180	380	1150
Total units to be purchased (a)	51330	26020	44600	121950
Unit price (b)	$1.00	$2.30	$3.00
Total direct materials to be purchased (c=a*b) $	51330	59846	133800	244976