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 14,200   21,000   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 1 610 lb. 200 lb. 380 lb. Desired inventory, September 30 640 lb. 190 lb. 410 lb. Price per pound $1.20   $2.30   $3.40   Prepare September's direct materials purchases budget for Lorenzo’s Frozen Pizza Inc. When required, enter unit prices to the nearest cent.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

Direct Materials Purchases Budget

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 14,200   21,000  

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 1 610 lb. 200 lb. 380 lb.
Desired inventory, September 30 640 lb. 190 lb. 410 lb.
Price per pound $1.20   $2.30   $3.40  

Prepare September's direct materials purchases budget for Lorenzo’s Frozen Pizza Inc. When required, enter unit prices to the nearest cent.

 

**Prepare September's Direct Materials Purchases Budget for Lorenzo’s Frozen Pizza Inc.**

### 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              | [___]       | [___]      | [___]      |            |
| 16" pizza              | [___]       | [___]      | [___]      |            |
|                        |             |            |            |            |
| **Total pounds required**        | [___]       | [___]      | [___]      |            |
|                        |             |            |            |            |
| **Total units to be purchased**  | [___]       | [___]      | [___]      |            |
| **Unit price**                     | x $[___]   | x $[___]  | x $[___]  |            |
| **Total direct materials to be purchased** | $[___] | $[___]  | $[___]  | $[___]  |

This table provides a format for planning the purchases of dough, tomato, and cheese, essential ingredients for producing 12" and 16" pizzas. Fill in the respective fields to calculate the total pounds required, units to be purchased, and the total cost based on unit prices for each ingredient.
Transcribed Image Text:**Prepare September's Direct Materials Purchases Budget for Lorenzo’s Frozen Pizza Inc.** ### 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 | [___] | [___] | [___] | | | 16" pizza | [___] | [___] | [___] | | | | | | | | | **Total pounds required** | [___] | [___] | [___] | | | | | | | | | **Total units to be purchased** | [___] | [___] | [___] | | | **Unit price** | x $[___] | x $[___] | x $[___] | | | **Total direct materials to be purchased** | $[___] | $[___] | $[___] | $[___] | This table provides a format for planning the purchases of dough, tomato, and cheese, essential ingredients for producing 12" and 16" pizzas. Fill in the respective fields to calculate the total pounds required, units to be purchased, and the total cost based on unit prices for each ingredient.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education