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	16,600		21,300

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	620	lbs.	240	lbs.	380	lbs.
Desired inventory, June 30, 2016	650	lbs.	230	lbs.	410	lbs.
Price per pound	$1.2		$2.7		$3.2

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	$	$	$	$

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