Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Direct materials purchases budget Coca - Cola Company ( K 0 ) , dilutes and mixes the concentrate with carbonated water, and then fills the

Direct materials purchases budget Coca-Cola Company (K0), 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 Coke and Sprite two-liter bottles at the Wakefield, UK, bottling plant is as follows for the month of May:
Coke 153,000 two-liter bottles
Sprite 86,500 two-liter bottles
In addition, assume that the concentrate costs $75 per pound for both Coke and Sprite and is used at a rate of 0.15 pound per 100 liters of carbonated water in blending Coke and 0.10 pound per 100 liters of carbonated water in blending Sprite. Assume that two liters of carbonated water are used for each two-liter bottle of finished product. Assume further that twasliter bottles cost $0.08 per bottle and carbonated water costs $0.06 per liter.
Prepare a direct materials purchases budget for May, assuming inventories are ignored, because there are no changes between beginning and ending inventories for concentrate, bottles, and carbonated water.
Coca-Cola Enterprises-Wakefield Plant
Direct Materials Purchases Budget
For the Month Ending May 31(assumed data)
Line Item Description
Concentrate
2-Liter Bottles
Carbonated Water
Materials required for production:
Coke ?
Ibs. btls. Itrs.
Sprite ?
Total materials
Ibs.
\table[[,btls],[x,],[$,]]
\table[[,Itrs.],[x$,],[$,]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles A Business Perspective

Authors: Roger H. Hermanson, James Don Edwards, Michael W. Maher

1st Edition

1680921851, 978-1680921854

More Books

Students also viewed these Accounting questions