Exercise 21-9

Budgeting Systems for Management Accounting Warren / Reeve / Duchac Exercise 21-9 solution

Direct materials purchases budget
Marino's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for April 2010:

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:

In addition, Marino's has determined the following information about each material:

Prepare the April direct materials purchases budget for Marino's Frozen Pizza Inc.