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 $ $ $
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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