Week $8$ Chapter $11($Homework$)$

Direct Materials Purchases Budget

Dominick Inc. has determined from its production budget the following estimated production volumes for ${12}^{\text{'}\text{'}}$ and $16"$ frozen pizzas for September:

$\backslash$table$[[,$Units,Units$],[,12"$ Pizza,${16}^{\text{'}\text{'}}$ Pizza$],[$Budgeted production volume,$12,900,24,400]]$

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:

$\backslash$table$[[,12"$ Pizza,$1^2$ Pizza$],[$Direct materials:,,$],[$Dough$,0\mathrm{.}65lb.$ per unit,$1\mathrm{.}05lb.$ per unit$],[$Tomato$,0\mathrm{.}35,0\mathrm{.}50],[$Cheese$,0\mathrm{.}55,0\mathrm{.}85]]$

In addition, Dominick Inc. has determined the following information about each material:

$\backslash$table$[[,$Dough,Tomato,Cheese$],[$Estimated inventory, September $1,520lbs.,160lbs.,330lbs.],[$Desired inventory, September $30,550lbs.,160lbs.,360lbs.],[$Price per pound,$$1\mathrm{.}00,$$$2\mathrm{.}40,$$$3\mathrm{.}20$