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 22,000 two-liter bottles Brand 2 17,000 two-liter bottles In addition, assume that the concentrate costs $85 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 Ibs. btls. Itrs. Brand 2 Total materials Ibs. btls. Itrs. Direct materials unit price Total direct materials to be purchased
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 22,000 two-liter bottles Brand 2 17,000 two-liter bottles In addition, assume that the concentrate costs $85 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 Ibs. btls. Itrs. Brand 2 Total materials Ibs. btls. Itrs. Direct materials unit price Total direct materials to be purchased
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Direct Materials Purchases Budget
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
22,000 two-liter bottles
Brand 2
17,000 two-liter bottles
In addition, assume that the concentrate costs $85 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
Ibs.
btls.
Itrs.
Brand 2
Total materials
Ibs.
btls.
Itrs.
Direct materials unit price
Total direct materials to be purchased
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