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 16,300 20,700

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 600 lbs. 180 lbs. 380 lbs.
Desired inventory, June 30, 2016 630 lbs. 170 lbs. 410 lbs.
Price per pound $1.2 $2.2 $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

Direct materials purchases budget for Marino's Frozen Pizza Inc. is as prepared below:

Marino's Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending June 30, 2016 Particulars Dough Tomato Cheese Total Units Required for production: 12'' pizza 14,670 9,780 13,040 37,490 16'' pizza 18,630 12,420 16,560 47,610 Add Ending inventory June 30, 2016 630 170 410 1,210 Total 33,930 22,370 30,010 86,310 Less Beginning inventory June 1, 2016 -600 -180 -380 -1,160 Total units to be purchased 33,330 22,190 29,630 85,150 Unit price 1.2 2.2 3.3 7 Total direct material to be purchased 39,996 48,818 97,779 186,593

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