despese pe r vedere le Units 12 Pizza 16 Pizza 12500 21800 v

despese pe r vedere le Units 12\" Pizza 16\" Pizza 12,500 21,800 vertoning Budgeted production volume 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 Tomato Cheese 1.50 lb. per unit 0.80 lb. per unit 0.50 0.70 0.70 1.30 In addition, Lorenzo\'s has determined the following information about each material: Estimated inventory, September 1 Desired inventory, September 30 Price per pound Dough 490 lb. 580 lb. $0.50 Tomato 230 lb. 185 lb. $2.20 Cheese 275 lb. 340 lb. $2.60 Prepare September\'s direct materials purchases budget for Lorenzo\'s Frozen Pizza Inc.

Solution

first let us know the material required to meet production requirements:

direct material purchase budget:

	Dough	Tomato	Cheese
12 pizza	12,500*0.80=>10,000	12,500*0.50=>6,250	12,500*0.70=>8,750
16 pizza	21,800*1.50=>32,700	21,800*0.70=>15,260	21,800*1.30=>28,340
total	42,700 lbs	21,510 lbs	37,090 lbs