Question

Direct Materials Purchases Budget

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	14,300		24,500

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	550	lbs.	240	lbs.	380	lbs.
Desired inventory, September 30	580	lbs.	230	lbs.	410	lbs.
Price per pound	$1.20		$2.60		$3.20

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

Answer:-

Romano's Frozen Pizza Inc.
Direct Materials Purchase Budget
For the month ending September 30
Particulars	Dough	Tomato	Cheese	Total
Units required for production:
12" pizza	14300 units*.90 lb per unit =12870 lbs	14300 units*.60 lb per unit =8580 lbs	14300 units*.80 lb per unit =11440 lbs	32890
16" pizza	24500 units*1.50 lb per unit =36750 lbs	24500 units*1.00 lb per unit =24500 lbs	24500 units*1.30 lb per unit =31850 lbs	93100
Add:-Beginning inventory	550	240	380	1170
Less:- Closing Inventory	580	230	410	1220
Total units to be purchased (a)	49590	33090	43260	125940
Unit price (b)	$1.20	$2.60	$3.20
Total direct materials to be purchased (c=a*b)	59508	86034	138432	283974