Marino\'s Frozen Pizza Inc. has determined from its production budget the follow
ID: 2471906 • Letter: M
Question
Marino's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for June 2014: Units 12" Pizza 16" Pizza Budgeted production volume 13,700 22,400 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 0.90 lb. per unit 1.50 lbs. per unit Tomato 0.60 1.00 Cheese 0.80 1.30 In addition, Marino's has determined the following information about each material: Dough Tomato Cheese Estimated inventory, June 1, 2014 630 lbs. 230 lbs. 280 lbs. Desired inventory, June 30, 2014 660 lbs. 220 lbs. 310 lbs. Price per pound $1.40 $2.40 $3.20 Hide Prepare June's direct materials purchases budget for Marino's Frozen Pizza Inc. When required, enter unit prices to the nearest cent
Explanation / Answer
Details 12 " Frozen Piza 16 " Frozen Piza Total Budgeted Production volume 13,700 22,400 Direct Material Requiremet er Unit Dough 0.9 1.5 Tomato 0.6 1 Cheese 0.8 1.3 Total Required for Production Dough 12,330.00 33,600.00 Tomato 8,220.00 22,400.00 Cheese 10,960.00 29,120.00 Add: Desired Inventory Dough 660 660 Tomato 220 220 Cheese 310 310 less Estimated Opening Inventory Dough 630 630 Tomato 230 230 Cheese 280 280 Total purchase required in units Dough 12,360.00 33,630.00 45,990.00 Tomato 8,210.00 22,390.00 30,600.00 Cheese 10,990.00 29,150.00 40,140.00 price Per lbs Dough 1.4 1.4 1.4 Tomato 2.4 2.4 2.4 Cheese 3.2 3.2 3.2 Total Purchase Value Dough 17,304.00 47,082.00 64,386.00 Tomato 19,704.00 53,736.00 73,440.00 Cheese 35,168.00 93,280.00 1,28,448.00
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