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Plant Coca-Cola Enterprises-Wakefield Direct Materials Purchases Budget For the Month Ending May 31 (assumed data)

Plant Coca-Cola Enterprises-Wakefield Direct Materials Purchases Budget For the Month Ending May 31 (assumed data)

FINANCIAL ACCOUNTING
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 (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. For the month of May, the estimated production for Coke and Sprite two-liter bottles at the Wakefield, UK, bottling plant is as follows: - **Coke**: 153,000 two-liter bottles - **Sprite**: 86,500 two-liter bottles Additional assumptions include: - The concentrate costs $75 per pound for both Coke and Sprite. - Concentration use rates: - 0.15 pound per 100 liters of carbonated water for Coke - 0.10 pound per 100 liters of carbonated water for Sprite - Two liters of carbonated water are used for each two-liter bottle of finished product. - Cost: - Two-liter bottles: $0.08 per bottle - Carbonated water: $0.06 per liter **Task:** Prepare a direct materials purchases budget for May. Inventories are ignored, as there are no changes between beginning and ending inventories for concentrate, bottles, and carbonated water. ### Coca-Cola Enterprises—Wakefield Plant **Direct Materials Purchases Budget for the Month Ending May 31 (assumed data)** | | Concentrate | 2-Liter Bottles | Carbonated Water | |----------------------------|-------------|-----------------|------------------| | Materials required for production: | | | | | Coke® | ___ lbs. | ___ btls. | ___ ltrs. | | Sprite® | ___ lbs. | ___ btls. | ___ ltrs. | | Total materials | ___ lbs. | ___ btls. | ___ ltrs. | | Direct materials unit price| x $75 | x $0.08 | x $0.06 | | Total direct materials to be purchased | $___ | $___ | $___ | Fill in the blank spaces with the calculated values to complete the budget.
Transcribed Image Text:### 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. For the month of May, the estimated production for Coke and Sprite two-liter bottles at the Wakefield, UK, bottling plant is as follows: - **Coke**: 153,000 two-liter bottles - **Sprite**: 86,500 two-liter bottles Additional assumptions include: - The concentrate costs $75 per pound for both Coke and Sprite. - Concentration use rates: - 0.15 pound per 100 liters of carbonated water for Coke - 0.10 pound per 100 liters of carbonated water for Sprite - Two liters of carbonated water are used for each two-liter bottle of finished product. - Cost: - Two-liter bottles: $0.08 per bottle - Carbonated water: $0.06 per liter **Task:** Prepare a direct materials purchases budget for May. Inventories are ignored, as there are no changes between beginning and ending inventories for concentrate, bottles, and carbonated water. ### Coca-Cola Enterprises—Wakefield Plant **Direct Materials Purchases Budget for the Month Ending May 31 (assumed data)** | | Concentrate | 2-Liter Bottles | Carbonated Water | |----------------------------|-------------|-----------------|------------------| | Materials required for production: | | | | | Coke® | ___ lbs. | ___ btls. | ___ ltrs. | | Sprite® | ___ lbs. | ___ btls. | ___ ltrs. | | Total materials | ___ lbs. | ___ btls. | ___ ltrs. | | Direct materials unit price| x $75 | x $0.08 | x $0.06 | | Total direct materials to be purchased | $___ | $___ | $___ | Fill in the blank spaces with the calculated values to complete the budget.
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