Question

1. Lorenzo’s Frozen Pizza Inc. has determined from its A budget of estimated unit production.production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for September:

   	Units
   	12" Pizza		16" Pizza
   Budgeted production volume	15,200		20,600

   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	630	lb.	180	lb.	330	lb.
   Desired inventory, September 30	660	lb.	170	lb.	360	lb.
   Price per pound	$1.00		$2.70		$3.10

   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
   Plus estimated inventory, September 1 Less desired inventory, September 1 Less desired inventory, September 30 Plus desired inventory, September 1 Plus desired inventory, September 30 Plus estimated inventory, September 1 Plus estimated inventory, September 30
   Total pounds required
   Less desired inventory, September 1 Less desired inventory, September 30 Less estimated inventory, September 1 Less estimated inventory, September 30 Plus estimated inventory, September 1 Plus estimated inventory, September 30
   Total units to be purchased
   Unit price	x $	x $	x $
   Total direct materials to be purchased	$	$	$	$

Answer 1

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	12160	7600	10640
16" pizza	30900	14420	26780
Plus desired inventory, September 30	660	170	360
Total pounds required	43720	22190	37780
Less estimated inventory, September 1	-630	-180	-330
Total units to be purchased	43090	22010	37450
Unit price	x $1	x $2.70	x $3.30
Total direct materials to be purchased	$43090	$59427	$123585	$226102