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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
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 Sprite 153,000 two-liter bottles 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. Whep required, enter unit prices to the nearest cent. Coca-Cola Enterprises-Wakefield Plant Direct Materials Purchases Budget For the Month Ending May 31 (assumed data) Concentrate 2-Liter Bottles Carbonated Water Materials required for production: Cokes 572 lbs. bds Itrs. Sprite 312 Total materials required 884 lbs. btls. trs. Unit price
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