Lorenzo's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12

Question:

Lorenzo'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.......................12,500..........21,800

Three direct materials are 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..............................0.80 lb. per unit..........1.50 lb. per unit

Tomato...........................................0.50........................0.70

Cheese............................................0.70........................1.30

In addition, Lorenzo's has determined the following information about each material:

Dough Tomato Cheese

Estimated inventory, September......1 490 lb...........230 lb..........275 lb.

Desired inventory, September........30 580 lb...........185 lb..........340 lb.

Price per pound.............................$0.50............$2.20............$2.60

Prepare September's direct materials purchases budget for Lorenzo's Frozen Pizza Inc.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting

ISBN: 978-1337899451

27th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

Question Posted: