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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 CocaCola Company dilutes and mixes the concentrate with carbonated water, and then fills the blended beverage into cans or plastic twoliter bottles. Assume that the estimated production for Coke and Sprite twoliter bottles at the Wakefield, UK bottling plant is as follows for the month of May:
Coke twoliter bottles
Sprite twoliter bottles
In addition, assume that the concentrate costs $ per pound for both Coke and Sprite and is used at a rate of pound per liters of carbonated water in blending Coke and pound per liters of carbonated water in blending Sprite. Assume that two liters of carbonated water are used for each twoliter bottle of finished product. Assume further that twasliter bottles cost $ per bottle and carbonated water costs $ 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.
CocaCola EnterprisesWakefield Plant
Direct Materials Purchases Budget
For the Month Ending May assumed data
Line Item Description
Concentrate
Liter Bottles
Carbonated Water
Materials required for production:
Coke
Ibs. btls Itrs.
Sprite
Total materials
Ibs.
tablebtls$
tableItrs.$$
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