Question

Romano's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for September:

	Units
	12" Pizza		16" Pizza
Budgeted production volume	5,300		8,900

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	0.70	lb. per unit	1.50	lbs. per unit
	Tomato	0.40		0.70
	Cheese	0.60		1.30

In addition, Romano’s has determined the following information about each material:

	Dough		Tomato		Cheese
Estimated inventory, September 1	520	lbs.	200	lbs.	295	lbs.
Desired inventory, September 30	580	lbs.	185	lbs.	315	lbs.
Price per pound	$0.80		$1.60		$2.40

Prepare September'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.

Romano’s Frozen Pizza Inc.
Direct Materials Purchases Budget
For the Month Ending September 30
	Dough	Tomato	Cheese	Total units available
Units required for production:
12" pizza
16" pizza
Desired inventory, September 30
Total units available
Estimated inventory, September 1
Total units to be purchased
Unit Price	x $	x $	x $
Total direct materials to be purchased	$	$	$	$

Answer 1

		Romanos Frozen Pizza Inc
		Direct Materials Purchase Budget
		For the Month Ending September 30.
			Dough	Tomato	Cheese	Total
		Units Required in production :
		12'' Pizza	3710	2120	3180
		16'' Pizza	13350	6230	11570
		Desired Inventory, September 30	580	185	315
		Total units available	17640	8535	15065
		Estimated Inventory, September 1	-520	-200	-295
		Total Units to be purchased	17120	8335	14770
		Unit Price	$            0.80	$            1.60	$              2.40
		Total Direct Materials to be Purchased	$        13,696	$        13,336	$           35,448	$       62,480