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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
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 66,000 two-liter bottles Brand 2 50,000 two-liter bottles In addition, assume that the concentrate costs $86 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 Concentrate 2-Liter Bottles Carbonated Water Materials required for production: Brand 1 lbs. btls. Itrs. Brand 2 Total materials lbs. btls. Itrs. Direct materials unit price $ Total direct materials to be purchased $|
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