Question

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 15,400 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 520 lbs. 220 lbs. 320 lbs. Desired inventory, June 30, 2016 550 lbs. 210 lbs. 350 lbs. Price per pound $1.4 $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 Plus estimated inventory, June 1, 2016 Total Total units to be purchased Unit price x $ x $ x $ Total direct materials to be purchased $ $ $ $

Answer 1

Direct Materials Purchases Budgets
For the month ending 30 june, 2016
	Dough	Tomato	Cheese	Total
Units required for production:
12" Pizza	13,860 (15,400 ×0.9)	9,240 (15,400 × 0.6)	12,320 (15,400 × 0.8)
16" Pizza	31,200 (20,800 × 1.5)	20,800 (20,800 ×1)	27,040 (20,800 ×1.3)
Plus: desired inventory, june 30,2016	550	210	350
Total inventory	45,610	30,250	39,710
Less: estimate inventory, june 01,2016	520	220	320
Total units to be purchased (a)	45,090	30,030	39,390
Unit price (b)	$1.4	$2.6	$3
Total direct materials to be purchased (a×b)	$63,126	$78,078	$118,170	$259,374