Question
Please Need help with this question. Coca-Cola Enterprises (CCE) is the largest bottler of Coca-Cola in North America. The company purchases Coke and Sprite concentrate
Please Need help with this question.
- Coca-Cola Enterprises (CCE) is the largest bottler of Coca-Cola in North America. The company purchases Coke and Sprite concentrate from The Coca-Cola Company (KO), 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.
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