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 | 14,600 | 23,400 |
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 | 580 | lb. | 220 | lb. | 280 | lb. |
| Desired inventory, September 30 | 610 | lb. | 210 | lb. | 310 | lb. |
| Price per pound | $1.10 | $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.
| 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 |
Direct Materials Purchases Budget
Anticipated sales for Solid Grip Company were 38,000 passenger car tires and 24,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:
| Passenger Car | Truck | |
| Rubber | 36 lb. per unit | 80 lb. per unit |
| Steel belts | 6 lb. per unit | 10 lb. per unit |
The purchase prices of rubber and steel are $1.40 and $0.90 per pound, respectively. The desired ending inventories of rubber and steel belts are 35,000 and 12,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 40,000 and 10,000 pounds, respectively.
Prepare a direct materials purchases budget for Solid Grip Company for the year ended December 31, 20Y8. When required, enter unit prices to the nearest cent.
Solid Grip CompanyDirect Materials Purchases BudgetFor the Year Ending December 31, 20Y8
| Rubber | Steel Belts | Total | |
| Pounds required for production: | |||
| Passenger tires | fill in the blank __lb. | fill in the blank __lb. | |
| Truck tires | |||
|
Plus desired inventory, December 31, 20Y8
|
|||
| Total pounds required | fill in the blank ___lb. | fill in the blank ___lb. | |
|
Less estimated inventory, January 1, 20Y8
|
|||
| Total pounds to be purchased | fill in the blank ___lb. | fill in the blank ___lb. | |
| Unit price | x $ | x $ | |
| Total direct materials to be purchased | $ | $ | $ |
Direct Materials Purchases Budget
Anticipated sales for Safety Grip Company were 42,000 passenger car tires and 19,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:
| Passenger Car | Truck | |
| Rubber | 35 lbs. per unit | 78 lbs. per unit |
| Steel belts | 5 lbs. per unit | 8 lbs. per unit |
The purchase prices of rubber and steel are $1.20 and $0.80 per pound, respectively. The desired ending inventories of rubber and steel belts are 40,000 and 10,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 46,000 and 8,000 pounds, respectively.
Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9.
| Safety Grip Company | |||
| Direct Materials Purchases Budget | |||
| For the Year Ending December 31, 20Y9 | |||
| Rubber | Steel Belts | Total | |
| Pounds required for production: | |||
| Passenger tires | fill in the blank 1 lbs. | fill in the blank 2 lbs. | |
| Truck tires | fill in the blank 3 | fill in the blank 4 | |
| Desired inventory, December 31, 20Y9 | fill in the blank 6 | fill in the blank 7 | |
| Total pounds available | fill in the blank 8 lbs. | fill in the blank 9 lbs. | |
| Estimated inventory, January 1, 20Y9 | fill in the blank 11 | fill in the blank 12 | |
| Total units purchased | fill in the blank 13 lbs. | fill in the blank 14 lbs. | |
| Unit price | x $fill in the blank 15 | x $fill in the blank 16 | |
| Total direct materials to be purchased | $fill in the blank 17 | $fill in the blank 18 | $fill in the blank 19 |
Direct Materials Purchases Budget
Anticipated sales for Safety Grip Company were 35,000 passenger car tires and 11,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table:
| Passenger Car | Truck | |
| Rubber | 27 lbs. per unit | 63 lbs. per unit |
| Steel belts | 5 lbs. per unit | 13 lbs. per unit |
The purchase prices of rubber and steel are $3.3 and $4.3 per pound, respectively. The desired ending inventories of rubber and steel belts are 33,000 and 7,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 39,000 and 6,000 pounds, respectively.
Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9.
| Safety Grip Company | |||
| Direct Materials Purchases Budget | |||
| For the Year Ending December 31, 20Y9 | |||
| Rubber | Steel Belts | Total | |
| Pounds required for production: | |||
| Passenger tires | fill in the blank 1lbs. | fill in the blank 2lbs. | |
| Truck tires | fill in the blank 3 | fill in the blank 4 | |
| fill in the blank 6 | fill in the blank 7 | ||
| Total pounds available | fill in the blank 8lbs. | fill in the blank 9lbs. | |
| fill in the blank 11 | fill in the blank 12 | ||
| Total units purchased | fill in the blank 13lbs. | fill in the blank 14lbs. | |
| Unit price | x $fill in the blank 15 | x $fill in the blank 16 | |
| Total direct materials to be purchased | $fill in the blank 17 | $fill in the blank 18 | $fill in the blank 19 |
Direct Materials Purchases Budget
Anticipated sales for Safety Grip Company were 74,000 passenger car tires and 22,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table:
| Passenger Car | Truck | |
| Rubber | 25 lbs. per unit | 58 lbs. per unit |
| Steel belts | 5 lbs. per unit | 13 lbs. per unit |
The purchase prices of rubber and steel are $3 and $3.9 per pound, respectively. The desired ending inventories of rubber and steel belts are 70,000 and 15,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 81,000 and 12,000 pounds, respectively.
Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9.
| Safety Grip Company | |||
| Direct Materials Purchases Budget | |||
| For the Year Ending December 31, 20Y9 | |||
| Rubber | Steel Belts | Total | |
| Pounds required for production: | |||
| Passenger tires | fill in the blank 1lbs. | fill in the blank 2lbs. | |
| Truck tires | fill in the blank 3 | fill in the blank 4 | |
| fill in the blank 6 | fill in the blank 7 | ||
| Total pounds available | fill in the blank 8lbs. | fill in the blank 9lbs. | |
| fill in the blank 11 | fill in the blank 12 | ||
| Total units purchased | fill in the blank 13lbs. | fill in the blank 14lbs. | |
| Unit price | x $fill in the blank 15 | x $fill in the blank 16 | |
| Total direct materials to be purchased | $fill in the blank 17 | $fill in the blank 18 | $fill in the blank 19 |
Direct Materials Purchases Budget
Pasadena Candle Inc. budgeted production of 740,000 candles for the year. Wax is required to produce a candle. Assume 10 ounces of wax is required for each candle. The estimated January 1 wax inventory is 17,100 pounds. The desired December 31 wax inventory is 14,100 pounds. If candle wax costs $1.40 per pound, determine the direct materials purchases budget for the year. (One pound = 16 ounces.) Round all computed answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
| Pasadena Candle Inc. | |
| Direct Materials Purchases Budget | |
| For the Year Ending December 31 | |
| Pounds of wax required for production: | |
| Candles | |
| Desired ending inventory, December 31 | |
| Total units available | |
| Estimated beginning inventory, January 1 | |
| Total pounds to be purchased | |
| Unit price | $ |
| Total direct materials to be purchased | $ |
Direct Materials Purchases Budget
FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick’s best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following:
| Practice Balls | Match Balls | ||||||
| Units | Selling Price | Units | Selling Price | ||||
| January | 45,000 | $8.95 | 6,900 | $17.10 | |||
| February | 57,000 | $8.95 | 8,200 | $17.10 | |||
| March | 88,000 | $8.95 | 12,000 | $17.10 | |||
| April | 100,000 | $8.95 | 17,500 | $17.10 |
FlashKick requires ending inventory of product to equal 20 percent of the next month’s unit sales. Beginning inventory in January was 9,000 practice soccer balls and 1,380 match soccer balls.
Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 2 ounces of glue. FlashKick’s policy is that 20 percent of the following month’s production needs for raw materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement.
Required:
Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. If required, round your answers to the nearest cent.
Direct materials purchases budget for polyvinyl chloride panels:
Direct Materials Purchases Budget
Anticipated sales for Safety Grip Company were 65,000 passenger car tires and 20,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table:
| Passenger Car | Truck | |
| Rubber | 33 lbs. per unit | 77 lbs. per unit |
| Steel belts | 7 lbs. per unit | 18 lbs. per unit |
The purchase prices of rubber and steel are $3.7 and $4.8 per pound, respectively. The desired ending inventories of rubber and steel belts are 61,000 and 13,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 72,000 and 11,000 pounds, respectively.
Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9.
| Safety Grip Company | |||
| Direct Materials Purchases Budget | |||
| For the Year Ending December 31, 20Y9 | |||
| Rubber | Steel Belts | Total | |
| Pounds required for production: | |||
| Passenger tires | fill in the blank 1lbs. | fill in the blank 2lbs. | |
| Truck tires | fill in the blank 3 | fill in the blank 4 | |
| fill in the blank 6 | fill in the blank 7 | ||
| Total pounds available | fill in the blank 8lbs. | fill in the blank 9lbs. | |
| fill in the blank 11 | fill in the blank 12 | ||
| Total units purchased | fill in the blank 13lbs. | fill in the blank 14lbs. | |
| Unit price | x $fill in the blank 15 | x $fill in the blank 16 | |
| Total direct materials to be purchased | $fill in the blank 17 | $fill in the blank 18 | $fill in the blank 19 |
Direct Materials Purchases Budget
Anticipated sales for Safety Grip Company were 42,000 passenger car tires and 19,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:
| Passenger Car | Truck | |
| Rubber | 35 lbs. per unit | 78 lbs. per unit |
| Steel belts | 5 lbs. per unit | 8 lbs. per unit |
The purchase prices of rubber and steel are $1.20 and $0.80 per pound, respectively. The desired ending inventories of rubber and steel belts are 40,000 and 10,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 46,000 and 8,000 pounds, respectively.
Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9.
| Safety Grip Company | |||
| Direct Materials Purchases Budget | |||
| For the Year Ending December 31, 20Y9 | |||
| Rubber | Steel Belts | Total | |
| Pounds required for production: | |||
| Passenger tires | fill in the blank 1 lbs. | fill in the blank 2 lbs. | |
| Truck tires | fill in the blank 3 | fill in the blank 4 | |
| fill in the blank 6 | fill in the blank 7 | ||
| Total pounds available | fill in the blank 8 lbs. | fill in the blank 9 lbs. | |
| fill in the blank 11 | fill in the blank 12 | ||
| Total units purchased | fill in the blank 13 lbs. | fill in the blank 14 lbs. | |
| Unit price | x $fill in the blank 15 | x $fill in the blank 16 | |
| Total direct materials to be purchased | $fill in the blank 17 | $fill in the blank 18 | $fill in the blank 19 |
Soda Company is the largest bottler in Western Europe. The company purchases Brand 1 and Brand 2 concentrate from The Soda Company, dilutes and mixes the concentrate with carbonated water, and then fills the blended beverage into cans or plastic two-liter bottles. Assume that the estimated production for Brand 1 and Brand 2 two-liter bottles at the Wakefield, UK, bottling plant are as follows for the month of March:
Brand 1 51,000 two-liter bottles
Brand 2 39,000 two-liter bottles
In addition, assume that the concentrate costs $87 per pound for both Brand 1 and Brand 2 and is used at a rate of 0.2 pound per 100 liters of carbonated water in blending Brand 1 and 0.25 pound per 100 liters of carbonated water in blending Brand 2. Assume that two liters of carbonated water are used for each two-liter bottle of finished product. Assume further that two-liter bottles cost $0.08 per bottle and carbonated water costs $0.06 per liter.
Prepare a direct materials purchases budget for March 2014, assuming inventories are ignored, because there are no changes between beginning and ending inventories for concentrate, bottles, and carbonated water. If required, round to the nearest whole number (except for unit price amounts, which should be rounded to nearest cent if required).
See the attached file for proper format.
E20-5 Moreno Industries has adopted the following production budget for the first 4 months of 2011.
Month Units Month Units
January 10,000 March 5,000
February 8,000 April 4,000
Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2010, the ending raw materials inventory was 9,000 pounds. Management wants to have a raw materials inventory at the end of the month equal to 30% of next month’s production requirements.
Complete the direct materials purchases budget by month for the first quarter.
MORENO INDUSTRIES
Direct Materials Purchases Budget
For the Quarter Ending March 31, 2011
January February March
×
×
×
Total pounds needed for production
Add:
Total materials required
Less:
Direct materials purchases
× $
× $
× $
Total cost of direct materials purchases $
$
$
The Soda Company dilutes and mixes the concentrate with carbonated water and then fills the blended beverage into cans or plastic two-liter bottles. Assume that the estimated production for Brand 1 and Brand 2 two-liter bottles are as follows for the month of March:
Brand 1 37,000 two-liter bottles
Brand 2 28,000 two-liter bottles
In addition, assume that the concentrate costs $81 per pound for both Brand 1 and Brand 2 and is used at a rate of 0.2 pound per 100 liters of carbonated water in blending Brand 1 and 0.25 pound per 100 liters of carbonated water in blending Brand 2. Assume that two liter bottles cost $0.09 per bottle and carbonated water costs $0.07 per liter.
Prepare a direct materials purchases budget for March 2010, assuming no changes between beginning and ending inventories for all three materials.
SODA COMPANY
Direct Materials Purchases Budget
For the Month Ending MARCH 31, 2010
(assumed data)
Concentrate 2-Liter Bottles Carbonated Water
Materials required for production:
Brand 1 lbs. btls. ltrs.
Brand 2 lbs. btls. ltrs.
Total materials lbs. btls. ltrs.
Direct materials unit price (Enter as dollars and cents.) $ $ $
Total direct materials to be purchased $ $
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