Direct Materials Purchases Budget Romano's Frozen Pizza Inc. has determined from its production budget the...
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Accounting
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
5,300
8,900
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
0.70
lb. per unit
1.50
lbs. per unit
Tomato
0.40
0.70
Cheese
0.60
1.30
In addition, Romanos has determined the following information about each material:
Dough
Tomato
Cheese
Estimated inventory, September 1
520
lbs.
200
lbs.
295
lbs.
Desired inventory, September 30
580
lbs.
185
lbs.
315
lbs.
Price per pound
$0.80
$1.60
$2.40
Prepare September's direct materials purchases budget for Romanos Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Romanos Frozen Pizza Inc.
Direct Materials Purchases Budget
For the Month Ending September 30
Dough
Tomato
Cheese
Total units available
Units required for production:
12" pizza
16" pizza
Desired inventory, September 30
Total units available
Estimated inventory, September 1
Total units to be purchased
Unit Price
x $
x $
x $
Total direct materials to be purchased
$
$
$
$
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