Question

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	15,300		27,000

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, Romano's has determined the following information about each material:

	Dough		Tomato		Cheese
Estimated inventory, September 1	590	lbs.	190	lbs.	290	lbs.
Desired inventory, September 30	620	lbs.	180	lbs.	320	lbs.
Price per pound	$1.10		$2.10		$3.00

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
	Dough	Tomato	Cheese	Total
Units required for production:
12" pizza
16" pizza
Total units available
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 Romano’s Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

	dough	Tomato	Cheese	Total
Units required for production:
12" pizza	13770	9180	12240
16" pizza	40500	27000	35100
Desired ending inventory	620	180	320
Total units available	54890	36360	47660
Less: Beginning inventory	-590	-190	-290
Total units to be purchased	54300	36170	47370
Unit price	1.10	2.10	3.00
Total direct materials to be purchased	59730	75957	142110	277797