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 13,500 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 1 620 lb. 200 lb. 280 lb. Desired inventory, September 30 650 lb. 190 lb. 310 lb. Price per pound $1.00 $2.20 $3.20 Prepare September's direct materials purchases budget for Lorenzo’s Frozen Pizza Inc. When required, enter unit prices to the nearest cent. Lorenzo’s Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending September 30 Dough Tomato Cheese Total Units required for production: 12" pizza fill in the blank 1 fill in the blank 2 fill in the blank 3 16" pizza fill in the blank 4 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 fill in the blank 10 Total pounds required fill in the blank 11 fill in the blank 12 fill in the blank 13 fill in the blank 15 fill in the blank 16 fill in the blank 17 Total units to be purchased fill in the blank 18 fill in the blank 19 fill in the blank 20 Unit price x $fill in the blank 21 x $fill in the blank 22 x $fill in the blank 23 Total direct materials to be purchased $fill in the blank 24 $fill in the blank 25 $fill in the blank 26 $fill in the blank 27
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 13,500 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 1 620 lb. 200 lb. 280 lb. Desired inventory, September 30 650 lb. 190 lb. 310 lb. Price per pound $1.00 $2.20 $3.20 Prepare September's direct materials purchases budget for Lorenzo’s Frozen Pizza Inc. When required, enter unit prices to the nearest cent. Lorenzo’s Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending September 30 Dough Tomato Cheese Total Units required for production: 12" pizza fill in the blank 1 fill in the blank 2 fill in the blank 3 16" pizza fill in the blank 4 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 fill in the blank 10 Total pounds required fill in the blank 11 fill in the blank 12 fill in the blank 13 fill in the blank 15 fill in the blank 16 fill in the blank 17 Total units to be purchased fill in the blank 18 fill in the blank 19 fill in the blank 20 Unit price x $fill in the blank 21 x $fill in the blank 22 x $fill in the blank 23 Total direct materials to be purchased $fill in the blank 24 $fill in the blank 25 $fill in the blank 26 $fill in the blank 27
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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 | 13,500 | 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 | 620 | lb. | 200 | lb. | 280 | lb. |
| Desired inventory, September 30 | 650 | lb. | 190 | lb. | 310 | lb. |
| Price per pound | $1.00 | $2.20 | $3.20 |
Prepare September's direct materials purchases budget for Lorenzo’s Frozen Pizza Inc. When required, enter unit prices to the nearest cent.
| Lorenzo’s Frozen Pizza Inc. | ||||
| Direct Materials Purchases Budget | ||||
| For the Month Ending September 30 | ||||
| Dough | Tomato | Cheese | Total | |
| Units required for production: | ||||
| 12" pizza | fill in the blank 1 | fill in the blank 2 | fill in the blank 3 | |
| 16" pizza | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 | |
| fill in the blank 8 | fill in the blank 9 | fill in the blank 10 | ||
| Total pounds required | fill in the blank 11 | fill in the blank 12 | fill in the blank 13 | |
| fill in the blank 15 | fill in the blank 16 | fill in the blank 17 | ||
| Total units to be purchased | fill in the blank 18 | fill in the blank 19 | fill in the blank 20 | |
| Unit price | x $fill in the blank 21 | x $fill in the blank 22 | x $fill in the blank 23 | |
| Total direct materials to be purchased | $fill in the blank 24 | $fill in the blank 25 | $fill in the blank 26 | $fill in the blank 27 |
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