Direct materials purchases budgetCoca-cola Enterprises (CCE) is the largest bottler of Coca-cola inWestern Europe. The company purchases Coke and Sprite concentrate from The Coca-cola Company (KO), dilutes and mixes the concentratewith carbonated water, and then fills the blended beverage into cans orplastic two-liter bottles. Assume that the estimated production for Cokeand Sprite two-liter bottles at the Wakefield, UK, bottling plant is asfollows for the month of May: CokeSprite 153,000 two-liter bottles86,500 two-liter bottles In addition, assume that the concentrate costs $75 per pound for both Coke and Sprite and is used at a rate of 0.15 pound per 100 liters ofcarbonated water in blending Coke and 0.10 pound per 100 liters ofcarbonated water in blending Sprite. Assume that two liters ofcarbonated 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 costs $0.06 per liter.Prepare a direct materials purchases budget for May, assuminginventories are ignored, because there are no changes betweenbeginning and ending inventories for concentrate, bottles, andcarbonated water.
Direct materials purchases budget
Coca-cola Enterprises (CCE) is the largest bottler of Coca-cola in
Western Europe. 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 Wakefield, UK, bottling plant is as
follows for the month of May:
| Coke Sprite |
153,000 two-liter bottles 86,500 two-liter bottles |
In addition, assume that the concentrate costs $75 per pound for both Coke and Sprite and is used at a rate of 0.15 pound per 100 liters of
carbonated water in blending Coke and 0.10 pound per 100 liters of
carbonated water in blending Sprite. Assume that two liters of
carbonated water are used for each two-liter bottle of finished product.
Assume further that two-liter bottles cost $0.08 per bottle and carbonated water costs $0.06 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.
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