Lorenzos Frozen Pizza Inc. has determined from its production budget the following estimated production volumes...
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Lorenzos 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
13,500
24,200
Three direct materials are 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
0.80
lb. per unit
1.50
lb. per unit
Tomato
0.50
0.70
Cheese
0.70
1.30
In addition, Lorenzos has determined the following information about each material:
Dough
Tomato
Cheese
Estimated inventory, September 1
520
lb.
180
lb.
290
lb.
Desired inventory, September 30
550
lb.
170
lb.
320
lb.
Price per pound
$1.20
$2.30
$3.40
Prepare September's direct materials purchases budget for Lorenzos Frozen Pizza Inc. When required, enter unit prices to the nearest cent.
Dough
Tomato
Cheese
Total
Units required for production:
12" pizza
16" pizza
Less desired inventory, September 1Less desired inventory, September 30Plus desired inventory, September 1Plus desired inventory, September 30Plus estimated inventory, September 1Plus estimated inventory, September 30
- Select -
- Select -
- Select -
Total pounds required
Less desired inventory, September 1Less desired inventory, September 30Less estimated inventory, September 1Less estimated inventory, September 30Plus estimated inventory, September 1Plus estimated inventory, September 30
- Select -
- Select -
- Select -
Total units to be purchased
Unit price
Total direct materials to be purchased
Answer & Explanation
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