Marino\'s Frozen Pizza Inc. has determined from its production budget the follow

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 2016: Units 12" Pizza 16" Pizza Budgeted production volume 15,200 25,200 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, 2016 530 lbs. 210 lbs. 270 lbs. Desired inventory, June 30, 2016 560 lbs. 200 lbs. 300 lbs. Price per pound $1.1 $2.4 $3.3 Prepare June's direct materials purchases budget for Marino's Frozen Pizza Inc. When required, enter unit prices to the nearest cent. Marino's Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending June 30, 2016 Dough Tomato Cheese Total Units required for production: 12" pizza 16" pizza Total Total units to be purchased Unit price x $ x $ x $ Total direct materials to be purchased $ $ $ $

Explanation / Answer

Purchase Budget-Dough Pizza-12'' Pizza-16'' Total Production volume 15200 25200 Required dough per unit 0.9 1.5 Estimated Production need 13680 37800 51480 Add: Desired Ending inventory 560 Total Needs 52040 Less: Begnining Inventory 530 Dough Material purchased 51510 Price per lb 1.1 Raw material in $ 56661 Purchase Budget-Tomato Pizza-12'' Pizza-16'' Total Production volume 15200 25200 Required Tomato per unit 0.6 1 Estimated Production need 9120 25200 34320 Add: Desired Ending inventory 200 Total Needs 34520 Less: Begnining Inventory 210 Dough Material purchased 34310 Price per lb 2.4 Raw material in $ 82344 Purchase Budget-Cheese Pizza-12'' Pizza-16'' Total Production volume 15200 25200 Required Cheese per unit 0.8 1.3 Estimated Production need 12160 32760 44920 Add: Desired Ending inventory 300 Total Needs 45220 Less: Begnining Inventory 270 Dough Material purchased 44950 Price per lb 3.3 Raw material in $ 148335 Total Budgeted Purchase in $ (56661+82344+148335): $ 287,340

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