Solution-Prepare a direct materials purchases budget for

Prepare a direct materials purchases budget for October

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Reference no: EM133090892

Question - Coca-Cola Enterprises (CCE) is the largest bottler of Coca-Cola® in North America. 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. Assume that the estimated production for Coke and Sprite two-liter bottles at the Dallas, Texas, bottling plant are as follows for the month of October:

Coke 1,500,000 two-liter bottles

Sprite 800,000 two-liter bottles

In addition, assume that the concentrate costs $75 per pound for Coke and Sprite. The concentrate is used at a rate of 0.20 pound per 100 liters of carbonated water in blending Coke and at a rate of 0.15 pound per 100 liters of carbonated water in blending Sprite. Assume that two-liter bottles cost $0.04 per bottle and carbonated water costs $0.03 per liter.

Required - Prepare a direct materials purchases budget for October, assuming no changes between beginning and ending inventories for all three materials.

Reference no: EM133090892

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Prepare a direct materials purchases budget for October

Reference no: EM133090892

Reference no: EM133090892

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