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 14,200   21,000   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 1 610 lb. 200 lb. 380 lb. Desired inventory, September 30 640 lb. 190 lb. 410 lb. Price per pound $1.20   $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.

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
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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 14,200   21,000  

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 1 610 lb. 200 lb. 380 lb.
Desired inventory, September 30 640 lb. 190 lb. 410 lb.
Price per pound $1.20   $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.

 

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
16" pizza
Total pounds required
Total units to be purchased
Unit price
x $
X $
Total direct materials to be purchased
$4
Transcribed Image Text: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 16" pizza Total pounds required Total units to be purchased Unit price x $ X $ Total direct materials to be purchased $4
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