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

Question

Romano's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12" and 16" frozen pizzas for June: Units 12" Pizza 16" Pizza Budgeted production volume 14,700 23,200 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 Tomato Cheese 0.90 lb. per unit 0.60 0.80 1.50 Ibs. per unit 1.00 1.30 In addition, Marino's has determined the following information about each material Estimated inventory, September 1 Desired inventory, September 30 Price per pound Prepare June's direct materials purchases budget for Romano's Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign Dough 620 lbs. 650 lbs $1.3 Tomato 220 lbs. 210 lbs. $2.1 Cheese 340 lbs 370 lbs Romano's Frozen Pizza Inc. Direct Materials Purchases Budget mber 30 Tomato For the Month Endin Dough Cheese Total Pounds required for production 12" pizza 16" pizza , Total Total pounds to be purchased Price per pound Total direct materials to be purchased

Explanation / Answer

Dough Tomato Cheese Total Pounds required for production: 12" pizza 13230 8820 11760 16" pizza 34800 23200 30160 Add: Desired inventory september 30 650 210 370 Total 35450 23410 30530 less: Desired inventory September 1 620 220 340 Total pounds to be purchased 34830 23190 30190 price per pound 1.3 2.1 3 Total direct materials to be purchased 45279 48699 90570 184548

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