Mama Leona s Frozen Pizza Inc. has determined from its production budget the following estimated production volumes
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Mama Leona s Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12 and 16 frozen pizzas for August:
Prepare a direct materials purchases budget for Mama Leona’s Frozen Pizza Inc.
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Units 12" Pizza 16" Pizza 36,100 56,700 Budgeted production volume 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 1.00 lb. per unit 1.50 lbs. per unit Tomato 0.50 0.70 0.80 1.10 Cheese In addition, Mama Leona's has determined the following information about each material: Dough Tomato Cheese Estimated inventory, August 1, 2002 Desired inventory, August 31, 2002 Price per pound 500 lbs. 200 lbs. 450 lbs. 600 lbs. 280 lbs. 380 lbs. $1.20 $1.80 $2.30
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