Direct Materials Purchases Budget
Lorenzo’s Frozen Pizza Inc. has determined from its productionbudget the following estimated production volumes for 12'' and 16''frozen pizzas for September:
| Units |
| 12" Pizza | 16" Pizza |
| Budgeted production volume | 13,400 | | 23,100 | |
Three direct materials are used in producing the two types ofpizza. The quantities of direct materials expected to be used foreach 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 informationabout each material:
| Dough | Tomato | Cheese |
| Estimated inventory, September 1 | 580 | lb. | 210 | lb. | 300 | lb. |
| Desired inventory, September 30 | 610 | lb. | 200 | lb. | 330 | lb. |
| Price per pound | $1.00 | | $2.10 | | $3.30 | |
Prepare September's direct materials purchases budget forLorenzo’s Frozen Pizza Inc. When required, enter unit prices to thenearest 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 $ | x $ | |
| Total direct materials to be purchased | $ | $ | $ | $ |
