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In addition, assume that the concentrate costs $90 per pound for both Brand 1 and Brand 2 and is used at a rate of 0.15 pound per 100 liters of carbonated water in blending Brand 1 and 0.2 pound per 100 liters of carbonated water in blending Brand 2. Assume that two liters of carbonated water are used for each two-liter bottle of finished product. Assume further that two-liter bottles cost $0.096 per bottle and carbonated water costs $0.076 per liter.
Problem 1: 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. If required, round to the nearest whole number (except for unit price amounts, which should be rounded to nearest cent if required).
Johnson and Pritchard are partners. If the land is sold in the future for P80,000, how much of the gain will be assigned to Pritchard?
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