Question

Direct Materials Prchases Budget Coca Cola Enterprises (CCE) is the largest bottle of Coca Cola in Western Europe. The company purchases coke and spreconcentrate from The Coca Cola Company (ko). dilutes and mixes the concentrate with carbonated water, and then fills the blended beverage into cans or plastic woter bottles. Assume that the estimated production for Coke and Sprite two liter bottles at the Wakefield, UK, betting plant is as follows for the month of May Coke 153,000 two-liter bottles 86,500 two-liter bottles In addition, assume that the concentrate costs $75 per pound for both Coke and Sprite and is used at a rate of 0.15 pound per 100 liters of carbonated water in blending Coke and 0.10 pound per 100 liters of carbonated water in blending Sprite. Assume that two iters of carbonated water are used for each weer bottle of finished product. Assume further that two-liter bottles cost $0.08 per bottle and carbonated water costs $0.06 per te Prepare a direct materials purchases budget for May, assuming inventories are ignored, because 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: lbs. Irs Coke Sprite Ibs Total materials lors. bài Direct materials unit price x XS Total direct materials to be purchased Previous Check My Work

Answer 1

Page No Date 1201 Coca-Cola Entexprises - Wakefield Plant Direct Materials Purchases Budget, For the Month Ending May 31 (assumed data) CONCENTRATE 2-LITRE Being CARBONATED WAIR Materials required for production Coke - 153,000 bottles 459 1,53,000 3,06,000 (0-15/100 pounds (2 lax 1,53,000 / XS 3.000 X 2litres) Sprite – 86,500 bottles 173 86,500 10-1/100 pounds 1,73,000 (2 lcx 86.500) Litter. x 86,500 x 2 litres Total Materials 632 2,39,500 4,79,000 Direct Materials Unit Price 75 0.08 0.06 Total Direct Materials to be purchased 47,400 19,160 28,740