Question

Direct material purchase budget

Romano’s Frozen Pizza Inc. has determined from its production budget the following estimated volumes for 12” and 16” frozen pizzas for September:

Units

12” pizza. 16” Pizza

Budgeted production volume. 12,900. 23,200

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, Romao’s has determined the following information about each material:

Dough. Tomato. Cheese

estimated inventory, September 1 610 lbs 220 lbs. 340 lbs.

desired inventory, September 30. 640 lbs. 640 lbs. 370 lbs.

price per pound. $1.50. $2.10. $3.00

prepare September’s direct material purchase 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 Purchased 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

Solution:

Direct Materials Purchased Budget
For the month ending September 30
Particulars	Dough	Tomato	Cheese	Total
Material Unit required for production:
12" Pizza	11610	7740	10320	29670
16" Pizza	34800	23200	30160	88160
Add: Ending inventory	640	640	370	1650
Total units available	47050	31580	40850	119480
Less: Beginning inventory	610	220	340	1170
Total units to be purchased	46440	31360	40510	118310
Unit Price	$1.50	$2.10	$3.00
Total direct materials to be purchased	$69,660.00	$65,856.00	$121,530.00	$257,046.00