Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Direct Materials Purchases Budget Coca-Cola Enterprises is the largest bottler of Coca-Cola in North America. 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 North America. 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 Dallas, Texas, bottling plant are as follows for the month of October: Coke 1,500,000 two-liter bottles Sprite 800,000 two-liter bottles In addition, assume that the concentrate costs $75 per pound for Coke and Sprite. The concentrate is used at a rate of 0.20 pound per 100 liters of carbonated water in blending Coke and at a rate of 0.15 pound per 100 liters of carbonated water in blending Sprite. Assume that two-liter bottles cost $0.04 per bottle and carbonated water costs $0.03 per liter. Prepare a direct materials purchases budget for October, assuming no changes between beginning and ending inventories for all three materials. Enter all amounts as positive numbers. COCA-COLA ENTERPRISES-DALLAS PLANT Direct Materials Purchases Budget For the Month Ending October 31 Concentrate 2-Liter Bottles Materials required for production: Coke lbs. btls. Carbonated Water Itrs. Sprite Total materials lbs. btls. Itrs. Direct materials unit price $ $ Total direct materials to be purchased
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