Obj. 4 Concentrate budgeted purchases $47,400 EX 21-10 Direct materials purchases budget Coca-Cola Enterprisen is the largest bottle 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 (Continued) 1088 Chapter 21 Budgeting two-liter bottles. Assume that the estimated production for Coke and Sprite two-liter bones 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 Coke and 0.10 pound per 100 liters of carbonated water in blending Sprite. Assume the 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 com $0.06 per liter. Prepare a direct materials purchases budget for May, assuming inventories are ignored, be: cause there are no changes between beginning ending inventories for concentrate, bottles, and carbonated water. and is used at a rate of 0.15 pound per 100 liters of carbonated water in blending