Direct Materials Purchases Budget Coca-Cola Enterprises is the largest bottler of Coca-Cola® in North America. 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 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. COCA-COLA ENTERPRISES—DALLAS PLANT Direct Materials Purchases Budget For the Month Ending October 31 Concentrate 2-Liter Bottles Carbonated Water Materials required for production: Coke® lbs. btls. ltrs. Sprite® Total materials lbs. btls. ltrs. Direct materials unit price $ $ $ Total direct materials to be purchased $ $ $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Direct Materials Purchases Budget

Coca-Cola Enterprises is the largest bottler of Coca-Cola^® in North America. 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 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.

COCA-COLA ENTERPRISES—DALLAS PLANT
Direct Materials Purchases Budget
For the Month Ending October 31
	Concentrate	2-Liter Bottles	Carbonated Water
Materials required for production:
Coke^®	lbs.	btls.	ltrs.
Sprite^®
Total materials	lbs.	btls.	ltrs.
Direct materials unit price	$	$	$
Total direct materials to be purchased	$	$	$

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