Direct Materials Purchases Budget

Soda Company 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 May:

Brand $143,000$ two$-$liter bottles

Brand $233,000$ two$-$liter bottles

In addition, assume that the concentrate costs $$77$ per pound for both Brand $1$ and Brand $2$ and is used at a rate of $0\mathrm{.}15$ pound per $100$ liters of carbonated

water in blending Brand $1$ and $0\mathrm{.}2$ pound per $100$ liters of carbonated water in blending Brand $2.$ Assume that two liters of carbonated water are used for each

two$-$liter bottle of finished product. Assume further that two$-$liter bottles cost $$0\mathrm{.}09$ per bottle and carbonated water costs $$0\mathrm{.}07$ 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. If required, round to the nearest whole number $($except for unit price amounts, which

should be rounded to nearest cent if required$).$

Soda Company$-$Wakefield Plant

Direct Materials Purchases Budget

For the Month Ending May $31($assumed data$)$

Materials required for production:

Brand $1$

Ibs.

btls$.$

Itrs.

Brand $2$

Total materials required

Unit price