Chapter 13 Budgeting and Standard Costs (13-8 Direct materials purchases budget a-Cola Enterprises is the largest bottler of Coca-Cola in North America. The company urchases Coke and Sprite concentrate from The Coca-Cola Company, dilutes and mix he concentrate with carbonated water, and then fills the blended beverage into cans of Jastic two-liter bottles. Assume that the estimated production for Coke and Sprite two hottles at the Dallas, Texas, bottling plant are as follows for the month of October: Coke 1,500,000 two-liter bottles Sprite 800,000 two-liter bottles In addition, assume that the concentrate costs $75 per pound for Coke and Sprite. The concentrate is used at a rate of 0.20 pound per 100 liters of carbonated water in blending Coke and at a rate of 0.15 pound per 100 liters of carbonated water in blending Sprite. Assume that two-liter bottles cost $0.04 per bottle and carbonated water costs $0.03 per liter. Prepare a direct materials purchases budget for October, assuming no changes between beginning and ending inventories for all three materials