Question
Direct Materials Purchases Budget Coca-Cola Enterprises is the largest bottler of Coca-Cola in Western Europe. The company purchases Coke and Sprite concentrate from The Coca-Cola
Direct Materials Purchases Budget
Coca-Cola Enterprises is the largest bottler of Coca-Cola in Western Europe. The company purchases Coke and Sprite concentrate from The Coca-Cola 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 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 two-liter bottles cost $0.08 per bottle and carbonated water costs $0.06 per liter.
Prepare a direct materials purchases budget for May, assuming that inventories are ignored, because there are no changes between beginning and ending inventories for concentrate, bottles, and carbonated water. When required, enter unit prices to the nearest cent.
Concentrate | 2-Liter Bottles | Carbonated Water | Total | |
Materials required for production: | ||||
Coke | fill in the blank 1lbs. | fill in the blank 2btls. | fill in the blank 3ltrs. | |
Sprite | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 | |
Total materials required | fill in the blank 7lbs. | fill in the blank 8btls. | fill in the blank 9ltrs. | |
Unit price | x $fill in the blank 10 | x $fill in the blank 11 | x $fill in the blank 12 | |
Total direct materials to be purchased | $fill in the blank 13 | $fill in the blank 14 | $fill in the blank 15 | $fill in the blank 16 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started