despese pe r vedere le Units 12\" Pizza 16\" Pizza 12,500 21,800 vertoning Budge

Question

despese pe r vedere le Units 12" Pizza 16" Pizza 12,500 21,800 vertoning Budgeted production volume 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 Tomato Cheese 1.50 lb. per unit 0.80 lb. per unit 0.50 0.70 0.70 1.30 In addition, Lorenzo's has determined the following information about each material: Estimated inventory, September 1 Desired inventory, September 30 Price per pound Dough 490 lb. 580 lb. $0.50 Tomato 230 lb. 185 lb. $2.20 Cheese 275 lb. 340 lb. $2.60 Prepare September's direct materials purchases budget for Lorenzo's Frozen Pizza Inc.

Explanation / Answer

first let us know the material required to meet production requirements:

direct material purchase budget:

Dough Tomato Cheese 12 pizza 12,500*0.80=>10,000 12,500*0.50=>6,250 12,500*0.70=>8,750 16 pizza 21,800*1.50=>32,700 21,800*0.70=>15,260 21,800*1.30=>28,340 total 42,700 lbs 21,510 lbs 37,090 lbs

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