Roma Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12_ and 16_ frozen pizzas for November 2008:
|
|
Units |
|
|
|
12” Pizza |
16” Pizza |
|
Budgeted production volume |
16,400 |
25,600 |
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:
|
|
12” Pizza |
16” Pizza |
|
Direct materials: |
|
|
|
Dough |
1.00 lb. per unit |
1.50 lbs. per unit |
|
Tomato |
0.60 |
0.90 |
|
Cheese |
0.80 |
1.30 |
In addition, Roma has determined the following information about each material:
|
|
Dough |
Tomato |
Cheese |
|
Estimated inventory, November 1, 2008 |
675 lbs. |
190 lbs. |
525 lbs. |
|
Desired inventory, November 30, 2008 |
480 lbs. |
250 lbs. |
375 lbs. |
|
Price per pound |
$1.20 |
$2.40 |
$2.85 |
Prepare November’s direct materials purchases budget for Roma Frozen Pizza Inc.