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Book Show Me How Calculator Direct Materials Purchases Budget Tobins Frozen Pizza Inc. has determined from its production bu
Desired inventory, November 30 Price per pound 2,000 lbs. $0.50 1,200 lbs. $0.60 2,800 lbs. $0.85 Prepare Novembers direct m
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Answer #1
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 38500 17500 49000
16" pizza 40000 20000 60000
Plus Desired inventory, November 30 2000 1200 2800
Total units available 80500 38700 111800
Less estimated inventory, November 1 2500 1000 3000
Total units to be purchased 78000 37700 108800
Unit price 0.50 0.60 0.85
Total direct materials to be purchased 39000 22620 92480 154100
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