Math Problem
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Direct Materials Purchases Budget
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 12,900 24,000 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 650 lbs. 180 lbs. 360 lbs. Desired inventory, June 30, 2016 680 lbs. 170 lbs. 390 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 [removed] [removed] [removed] 16″ pizza [removed] [removed] [removed] [removed] [removed] [removed] Total [removed] [removed] [removed] [removed] [removed] [removed] Total units to be purchased [removed] [removed] [removed] Unit price x $[removed] x $[removed] x $[removed] Total direct materials to be purchased $[removed] $[removed] $[removed] $[removed]
