Direct Materials Purchases Budget Lorenzo’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 14,600 23,400 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, Lorenzo’s has determined the following information about each material: Dough Tomato Cheese Estimated inventory, September 1 580 lb. 220 lb. 280 lb. Desired inventory, September 30 610 lb. 210 lb. 310 lb. Price per pound $1.10 $2.30 $3.40 Prepare September's direct materials purchases budget for Lorenzo’s Frozen Pizza Inc. When required, enter unit prices to the nearest cent. Lorenzo’s Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending September 30 Dough Tomato Cheese Total Units required for production: 12" pizza fill in the blank 1 fill in the blank 2 fill in the blank 3 16" pizza fill in the blank 4 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 fill in the blank 10 Total pounds required fill in the blank 11 fill in the blank 12 fill in the blank 13 fill in the blank 15 fill in the blank 16 fill in the blank 17 Total units to be purchased fill in the blank 18 fill in the blank 19 fill in the blank 20 Unit price x $fill in the blank 21 x $fill in the blank 22 x $fill in the blank 23 Total direct materials to be purchased $fill in the blank 24 $fill in the blank 25 $fill in the blank 26 $fill in the blank 27

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 9E

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Direct Materials Purchases Budget

Lorenzo’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	14,600		23,400

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

	Dough	Tomato	Cheese
Estimated inventory, September 1	580	lb.	220	lb.	280	lb.
Desired inventory, September 30	610	lb.	210	lb.	310	lb.
Price per pound	$1.10		$2.30		$3.40

Prepare September's direct materials purchases budget for Lorenzo’s Frozen Pizza Inc. When required, enter unit prices to the nearest cent.

Lorenzo’s Frozen Pizza Inc.
Direct Materials Purchases Budget
For the Month Ending September 30
	Dough	Tomato	Cheese	Total
Units required for production:
12" pizza	fill in the blank 1	fill in the blank 2	fill in the blank 3
16" pizza	fill in the blank 4	fill in the blank 5	fill in the blank 6
	fill in the blank 8	fill in the blank 9	fill in the blank 10
Total pounds required	fill in the blank 11	fill in the blank 12	fill in the blank 13
	fill in the blank 15	fill in the blank 16	fill in the blank 17
Total units to be purchased	fill in the blank 18	fill in the blank 19	fill in the blank 20
Unit price	x $fill in the blank 21	x $fill in the blank 22	x $fill in the blank 23
Total direct materials to be purchased	$fill in the blank 24	$fill in the blank 25	$fill in the blank 26	$fill in the blank 27

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