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Direct Materials Purchases Budget Soda Bottling Enterprises is the largest bottler in Western Europe. The company purchases Brand 1 and Brand 2 concentrate from The
Direct Materials Purchases Budget Soda Bottling Enterprises is the largest bottler in Western Europe. The company purchases Brand 1 and Brand 2 concentrate from The Soda 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 Brand 1 and Brand 2 two-liter bottles at the Wakefield, UK, bottling plant are as follows for the month of October: Brand 1 Brand 21 24,000 two-liter bottles 18,000 two-liter bottles In addition, assume that the concentrate costs $66 per pound for both Brand 1 and Brand 2. The concentrate is used at a rate of 0.15 pound per 100 liters of carbonated water in blending Brand 1 and at a rate of 0.10 pound per 100 liters of carbonated water in blending Brand 2. Assume that two-liter bottles cost $0.07 per bottle and carbonated water costs $0.05 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. Soda Bottling Enterprises - Wakefield Plant Direct Materials Purchases Budget For the Month Ending October 31 Materials required for production: Brand 1 Brand 21 Total materials Direct materials unit price Total direct materials to be purchased Concentrate lbs. 2-Liter Bottles Carbonated Water btls. Itrs. btls. Itrs. lbs
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