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ID: 2439527 • Letter: #

Question

.com tMain.do?invoker-assignments&takeAssignmentSessionLocator; assignment-take&inprogress; false Direct Materials Purchases Budget Romano's Frozen Pizza Inc, has determined from its production budget the following estimated production volumes for 12" and 16 frozen pizzas for Units 12 Pizza 16" Pizza 15,700 23,800 Budgeted production volume There are three direct materials 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 0.90 lb. per unit 0.60 0.80 1.50 lbs. per unit 1.00 1.30 In addition, Romano's has determined the following information about each material: Dough Tomato Cheese 540 lbs. 220 bs. 300 ibs 70 Ibs. 210 lbs. 330 lbs Estimated inventory. September 1 Desired inventory, September 30 Price per pound Precare Sectember's direct materials purchases budget for Romano's Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative $1.50 $3.40 numbers use a minus sign

Explanation / Answer

Dough Tomato Cheese Units required for Production 12' Pizza 14130 9420 12560 16'Pizza 35700 23800 30940 Add: ending Inventory 570 210 330 Total Units available 50400 33430 43830 Less: Beginning Inventory 540 220 300 Total Units to be purchased 49860 33210 43530 Unit Price 1.5 2.5 3.4 Total Direct Material to be purchased 74790 83025 148002