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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$,],[$,]]
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