Chapter 21 HW Brand 2 Direct Materials Purchases Budget Soda is the largest bottler of Soda 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 is as follows for the month of May: Brand 1 125,000 two-liter bottles 95,000 two-liter bottles In addition, assume that the concentrate costs $76 per pound both Brand 1 and Brand 2 and is used at a rate of 0.1 pound per 100 liters of carbonated water in blending Brand 1 and 0.15 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 $0.085 per bottle and carbonated water costs $0.065 per liter. Prepare a direct materials purchases budget for May, assuming inventories are ignored, because there are no changes between beginning and ending inventories for concentrate, bottles, and carbonated water. Soda-Wakefield Plant Direct Materials Purchases Budget For the Month Ending May 31 (assumed data) Concentrate 2-Liter Bottles Materials required for production: Brand 1 Brand 2 Total materials lbs. Itrs. Direct materials unit price Total direct materials to be purchased $ > Carbonated Water X lbs. btis. Itrs. btis. x SI X $ X $ Feedback