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 44,000 two-liter bottles Brand 2 33,000 two-liter bottles In addition, assume that the concentrate costs $89 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 $0.09 per bottle and carbonated water costs $0.07 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 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 | 44,000 two-liter bottles |
| Brand 2 | 33,000 two-liter bottles |
In addition, assume that the concentrate costs $89 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 $0.09 per bottle and carbonated water costs $0.07 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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
